To hold it overnight or not

Discussion in 'Trading' started by innovest_11, Mar 4, 2008.

  1. It is really a guessing game, i really not sure whether to hold it overnight, any one has any guideline/rule, whether to hold stock overnight?
     
  2. cold

    cold

    stock overnight

    NNNNNNNNNNNNNNNNNNOOOOOOOOOOOOO

    clear enough for ya

    you can hold futures and fx overnight and use stops

    but stocks, Jesus H, everyone wants to be a trader

    can't blame people, financial advisors suck big time
     
  3. Yes, a very simple one: If you're leveraged > 1 across your account then do not hold overnight _UNLESS_ you hedged yourself with OTM options. Stocks: You are long/short stocks worth more than your account liquidation value. Futures: You are long/short contracts at a value (contract price x point value x # of contracts) greater than your account liquidation value. Obviously, common sense is required when trading highly correlated stocks/contracts (e.g. ES & YM etc.) as opposite positions in such instruments can help offset overnight risk.
     
  4. Aliengrey

    Aliengrey

    I do.

    The first question is will or do you make money doing it?

    If so the answer is yes, if not then no.

    The second question is (if you are just starting and figuring it out) if you are a trader like most people on here then your probably more short term and you want to liquidate every day. If you are a longer term trader like myself, then you may hold them for hours, days or weeks.

    Cheers,

    Alien.
     
  5. If your trading plan was for day trade you should not hold over nigh
     
  6. I always try to be hedged in my positions

    a few yrs ago I had a very expensive
    chinese meal thanks to a small ENRON option position held overnight

    ( don't worry ... it was a nice meal but not worth the 1K loss )

    :p