Interesting


This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com


Popular opinion would say to stay away from the 1st hour of trading. I signed up for the UTC, so I could learn how to do it. I could see I was missing opportunites, or worse, losing money. I’m pleased with what I found.

From this post by Dr. Brett, you can plainly see that you have to learn how to trade the opening hour.

Moreover, we can see that essentially all of the market’s upward trend has taken place during the first hour of trading. The first hour has accounted for about 1116 points of gain during 2007; the middle hours have lost about 780 points; and the last hour has gained about 719 points. What that means is that daytraders who sit out the first hour of trading have not, as a whole, benefited from the upward market trend. Indeed, there has been something of a downward trend to the market’s middle hours.


This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com


9 Responses

  1. Richard Says:

    Absolutely! The open and the close are where it’s at for stocks and futures alike, as far as I can tell.

  2. Mr. White Folks Says:

    the only play i can see in the mid afternoon is fading moves where it takes out the high/low by a few ticks…i haven’t become consistent with this yet, but i think it could be a high probability play…that’s another motivation in my search for a reliable, and timely indicator

    its no secret that “they” run stops…instead of complaining about it, i’m trying to identify it, and be on the right side

  3. Michael Lomker Says:

    One of the scalping systems that I’m pondering trades the ES premarket and first hour and then is done for the day. I find the concept interesting.

    http://www.eminitradingstrategies.com/

  4. Mr. White Folks Says:

    michael: when r u going to join the MtM team?

  5. Michael Lomker Says:

    lol. I’ll be a daytrader and writing my masters thesis (at night) beginning next month. I put my notice in at work yesterday and have been plowing through trading books and doing online research for the last three months. I know that the rest of you guys have a lot more trading experience than I do.

    David Marsh is a nice guy. I’ve exchanged a few emails with him and talked to a very credible guy that runs a chat forum and has sucessfully tested David’s system. http://www.askatrader.com

    The other system that I’m considering is EOT Pro–it was Richard’s posts that first lead me to MtM.

  6. Richard Says:

    Wow, Michael, that’s exciting! If you want to blog about your experiences, you are welcome to do it here. No matter what, be sure to keep us updated on how it goes.

    What’s the masters thesis about?

  7. Mr. White Folks Says:

    michael: experience doesn’t amount to much when you’re like a fish out of water (that comment is directed at myself and nobody else)…from the little bit i was able to glean from the link u gave, he sounds much like richard did when he was trading stocks…get your nut, and quit for the day!…i also would have joined eotpro if i hadn’t bought this mac…all in all, i’m glad to be done with windows

    i agree with richard…i think it would be very interesting for most traders to see u on your journey…especially with a good plan in place…anyone writing a masters thesis will fit right in at MtM (although, i would like some company on the lower end of the intelligence spectrum)

    btw, u may be the 1st liberty dollar nut to join the team :-)

    believe it or not, richard was the first to open his blog to different styles and perspectives…he started the trend, and i see that its caught on, in the blogosphere, over the last year…we are trend setters, but not necessarily trend followers…can’t wait to see your 1st post

  8. Michael Lomker Says:

    My degree is in Telecommunications–I’m a Cisco nerd by profession. My program requires a capstone paper, so it isn’t a research thesis. I’m going to write on the state of IPv6 migration–especially focusing on the aspects that will cause companies to stumble in their deployment. It’ll be written as an overview to assist consultants. My school isn’t fancy enough to require publication but I could probably wow them by submitting an article based upon it. heh.

    My dabbling in trading so far has not been profitable. I’m current down 25% on a Roth IRA that I’ve been learning options with. I’m up this month, though, so things are starting to turn around for me.

  9. Richard Says:

    no one’s profitable right away. Once you get to focus on it full-time, I think you will see faster progress. And the pressure to feed yourself can be a great motivator if it doesn’t mess with your head too much.

Leave a Comment

Please note: Comment moderation is enabled and may delay your comment. There is no need to resubmit your comment.