Why avoid the open?

Discussion in 'Strategy Building' started by Learner, Aug 23, 2005.

  1. Learner

    Learner

    I do so, but for better understanding i would like to hear from the experienced.

    TIA
     
  2. My very best trades come right off the open. Needs to be the right setup though.
     
  3. Who said so?
     
  4. Vince1

    Vince1

    Alan Farley:

    "Q - Many books recommend not buying or selling during the first hour. What's your opinion on this topic?

    A - It's more fun to play the piano with all 10 fingers. I like to trade the first hour, but only if the opportunity is right. I agree on avoiding the open most of time, but there are two strategic problems. First, amateurs should avoid the open, but experienced traders can overcome the increased risk through specific entry techniques."

    http://www.hardrightedge.com/wheel/hreentryfaq.htm
     
  5. acrary

    acrary

    Skip the first hour and you miss 40% of the best trades.

    I think only amateur's avoid the first hour.
     
  6. Welcome back acracy... you have been missed...
     
  7. Psst... acrary, any room in that PM box for a single message? Been trying to PM you for a while. I know you can't talk markets so its not a request for advice. Just wanted to say hi and give an update. Also, I recently bought Big Hitters per your suggestion. Hope your latest endeavor is paying off handsomely. Take care.
     
  8. acrary

    acrary

    Shsssssssssssssh...technically I'm still under contract for another week.
     
  9. FredBloggs

    FredBloggs Guest

    i avoid the first 5-10 min, depending on how the market is ticking on index futures. if i am trading fixed income, i just avoid the first couple of ticks.

    you must explain in what markets you are talking about here. garbage in, usual et garbage out.

    a lot of this talk is very dependant on your objectives.

    most of the big money funds are putting their orders in on the open, and many of the big traders i know only trade the opening hour, then go home having made a big stack.

    there is more to life than sitting in front of a screen.
     
  10. Babak

    Babak

    wasn't there a Hawaiian guy here who traded the open gap (journal)?

    personally, I think its wise to newbies to stand aside or to watch. Obviously the pros don't because its volative(=$$$).
     
    #10     Aug 23, 2005