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Henry:
By your question, I'm assuming you're wondering about short, day-trading
periods. Accuracy in prices or time is critical to success. If you monkey
with your clock,
1) Are you going to remember the correct time when the market closes?
2) Are you going to be caught holding a long 10-lot in a falling market?
3) Can liquidate after hours or have to wait for the next session when
opening prices may or may not be in your favor?
And speaking of opening positions...
Taking a position at the opening when opening prices "gap", could be
hazardous to your account equity. I've often wondered how a person can
place an order to take a position at the opening ("...buy/sell at the
opening...") before knowing - having the objective evidence of a price
chart - in which direction the market will move. Maybe I'm missing
something........
With the exception of the Jurik indicators, most indicators have to "catch
up" with prices after prices "gap" on the opening.
A good rule-of-thumb is to wait until indicators have "caught up" with
prices. As an example, if you are using a 10-period moving average on a
1-minute chart, wait 10 minutes if there is a gap, up or down, before taking
a position.
Unless you're extremely nimble and flexible, confident in your analysis and
trust your broker for quick fills, leave trading opening gaps to the "big
boys" in Chicago and New York.
Sure, somebody on this list may have a super-secret method for trading gaps,
that's always successful. If you do, all the more power to you.
I prefer a more conservative, assured approach of knowing to what I'm
committing equity - seeing the trees in the forest - before taking a
position.
----- Original Message -----
From: "Henry Amand" <back@xxxxxxxxxxx>
To: "omega-list" <omega-list@xxxxxxxxxx>
Sent: Thursday, August 09, 2001 9:47 AM
Subject: Using the opening and first 5 minutes of the session - Yes or No
> I am curious about if any of you traders around here have something
> to say about this ?
>
> Some people say that the first few minutes get influenced so much
> that you should set your starting time a few minutes later.
>
> I on the other hand think that it's data so i would want it in my
> "system".
>
> And would there be a difference when talking about this subject
> concurning stocks or concuring indexes ? The index ofcourse takes
> a maybe a minute or a few minutes before the actual index is made up ?
>
>
> Anyone anything to say please reply.
>
> Greetings and thanks in advance
>
> Henry Amand
>
>
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