Thursday, August 17, 2006

Watch Lists

I don't publish watch lists because I trade gap downs or gap ups almost exclusively. So until about 9:45 I haven't a clue what I might be trading that day and I generally do not take a trade until 10:00 or until after the market settles down. Many times I won't take a trade until I see the first three 15 minute bars of the DIA. The first three bars set the tone of the market for the day and I trade accordingly.

I learned long ago that I have no business trading in the first 30 minutes but I will sell an overnight holding in that time period if the price is right. (The price is always right because I won't hold an overnight holding beyond 9:40 or so).

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