Australian (ASX) Stock Market Forum

How do traders pick tomorrows open?

Ken

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22 August 2005
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Gday,

Day traders! How do you pick the next days open? How do you read it? Most of a days profit is made on open correct? SO you would be buying the previous day.

Case Study - BOL - I have been watching them lately and the last 5 days would appear to be a sell off. It has gone lower every day but it has opened higher than the previous days close every day.

However Today BOL opened 1 cent higher than the previous days close and had a high of 3.58 but closed at 3.55. I am a total beginner to day trading, what would the experts pick? If a stock closes lower than the high but still closer to the high than the low is this an indicator the stock may open higher tommorow? If it closed closer to the low of the day would that indicate a reversal of trading during the day and a lower start could be expected?


DATE..........open....high....low.....close...vol
27-03-2007 $3.530 $3.540 $3.500 $3.500 680,176
26-03-2007 $3.550 $3.590 $3.420 $3.510 733,652
23-03-2007 $3.570 $3.600 $3.520 $3.540 909,267
22-03-2007 $3.610 $3.640 $3.560 $3.570 1,322,462
21-03-2007 $3.640 $3.680 $3.570 $3.570 1,557,839
 
ok sounds like another can of worms Ken!
I've just recently started using metastock and seriously started monitoring stock movement. Eod (end of day trading) I think is fine if you have a built up experience with a particular stock but beyond that your t/a would need to be spot on. I've been trading on open looking for healthy volumes on a stock that has already had 10% or greater price increases the preceeding day (with 50% volume increases as well) ride the initial excitement and dump usually within the first half hour of trade. Has sometimes missed out on continuing runs and has sometimes taken out the high of the day. Still very much a discretionary method, the only thing mechanical being the stop loss which is 1 to 2 ticks.
However generally am finding that im consistantly picking up 2- 5 ticks.
Debate away!!
 
Here's one method:

chance_landing.jpg


:D
 
WayneL is right for a majority of the market.. but there are a few stocks out there that are quite genuinely good day trades.

Take Origin Energy (ORG) - it's perfect atm - i've scored 11 successful 1-3 day trades in it, but i'm expecting a medium term bullish breakout with oil surging.
 
I find it hard to believe that any day trading techniques are successful over the long term. Anyone can have a run, even at roulette, but long term it evens out and most end up losing.

So if you must I also like the wheel.
 
I find it hard to believe that any day trading techniques are successful over the long term. Anyone can have a run, even at roulette, but long term it evens out and most end up losing.

So if you must I also like the wheel.
Picking the open has nothing to do with day trading.

Day trading is no different to any other trading, it relies on positive expectancy. Devise a positive expectancy method and you will be consistently profitable.

See SPI threads to see this.
 
Ok agreed they are different. However, since the question was asked "How do traders pick tomorrows open?" I connected them.

I will follow up the threads you suggest.
 
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