Ten bounce plays on tap. No surprise after the down drafts last week. The markets are due for a bounce, if there are anymore dip buyers left standing that is. A simple decision maker is go with whatever is green.
AKAM 36.71
GT 27
BID 43.15 no news
NWA 18.99
CENX 52.77
CBT 39.25
AEA 14.87
DAR 7.82
ANO 2.51
GPK 4.52
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3 comments:
Just curious.
If XYZ closes at 10 and opens the next day at 9.5...where do you put your buy order? No more than 2% above 10 (10.2)? 5%? I know everybody should have there own number, just curious what you use.
Also, if it closes at 10 and opens at 10.5...too much of a move to buy? Wait 30 minutes to see? buy instantly? What % move is too high for you to get in?
Trying to perfect this "wait for green" thing. Thanks for all your help.
Mike (StockMonster)
I would put the buy limit order a few ticks above the close up to 10.05 the night before. If it opens at 10.50 then my limit order would not have been filled. I've had a few buy at the market at open that gapped up at the open and tanked immediatetly and I never used market orders anymore.
If you wait for the market open before taking the trade you have more control but it requires good trading skills. Like TRO is fond of saying "It's not what you trade but how you trade it". A skilled trader can trade any stock on any given day and make money with it is what TRO is implying. Until I reach that level, the green entry is very adequate.
The wait for green entry technique has been advocated by others such as Dave Landry of Tradingmarket.com
He describes it as enter when it trades above the last close, which Muddy elegantly phrase it as "wait for green". The logic behind it is that you want to see it moving in the direction that you want your trade to go which is up or green.
Hope this helps.k
Thanks for your response...this will clearly help in my trading!
Mike
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