tailieunhanh - The Morning Gap, Low Risk Opportunity for the Astute Market Speculator

Dù đang giao dịch hay hướng dẫn 1 lớp chứng khoán, future, option tại Online Trading Academy, rủi ro giao dịch ít nhất và lợi nhuận cao nhất mỗi ngày thường là khoảng trống lúc mở cửa | The Morning Gap Low Risk Opportunity for the Astute Market Speculator Whether I am trading or instructing a stock futures or options class at Online Trading Academy our lowest risk and highest reward trade each day is typically the opening gap entry. As soon as I suggest the trade to the class someone always says I was told we are not supposed to trade the open because it is not for the novice trader . That is not exactly what we say at Online Trading Academy. What we say is that the open is not for the novice trader. It is however a fantastic opportunity for the astute trader who knows how to identify a novice trader. Most of the time our entry is within seconds to minutes of the opening bell. There is a reason for this. Why do prices gap up They gap up because there are more buy orders at the open than there is available supply at the prior day s closing price. They gap down because there are more sell orders at the open than willing demand at the prior day s close. Therefore market prices are almost always at price levels where there is a supply and demand imbalance opportunity at the open. Never forget the successful market speculator simply finds markets where price is at levels where supply and demand are out of balance and trades them back to price levels where supply and demand is in balance. I started in this business on the floor of the Chicago Mercantile Exchange handling institution and retail order flow. Watching that order flow made it easy to see where prices were going to turn. For example if we had 10 buyers and 5 sellers at a price level as soon as the 5th seller sold price had to rise. Having the orders in your hand makes this easy to see. Knowing exactly what this picture looks like on a price chart makes it even easier. This week in the markets represented obvious opportunities related to gaps and order flow. We took advantage of them in class here in Chicago each day. We will do the same thing in Boston next week as two things never change. .