Make The Stock Market Spit Out Money Like A Broken ATM Machine!
In the stock market, the opening price is not as important as the closing price. The closing price is king. Knowing that the closing price is more important than the opening price will give you a major advantage over most stock market traders. You are about to learn how to pull crazy profits out of the stock market from this simple yet profound truth.
Let me jump right into this and teach you this incredibly profitable secret.
The closing price reflects the final consensus of value for the day. This is the price most people look at when they get off work or when they print their daily charts at the end of the day. It is especially important in the futures markets, because the settlement of trading accounts depends on it.
Professional traders trade throughout the day. Early in the day they take advantage of opening prices, selling high openings and buying low openings, and then unwinding those positions as the day goes on. Their normal mode of operations is to fade"trade against"market extremes and for the return to normalcy. When prices reach a new high and stall, professionals sell, nudging the market down. When prices stabilize after a fall, they buy, helping the market rally.
The waves of buying and selling by amateurs that hit the market at the opening usually subside as the day goes on. Why? Most traders on the west coast have a day job they have to go to so they log-on in the morning before work, put on a trade, then check it when they get home. Even traders on the east coast will put on a position at market open while at work and then check it at the end of the day. Near the closing time the market is dominated by professional traders.
If you know this, you have a gigantic advantage! How? This means that opening prices reflect the consensus of amateur traders while closing prices reflect the consensus of professional traders. Study almost any stock chart and you will discover how often the opening and closing ticks are at the opposite ends of a candlestick. This means that amateurs and professionals are usually on opposite sides of a trade. The side you want to be on is the side of the professionals because they have more money. Trade with the professionals and not against them like most market participants.
You should consider closing out your long position if the stock you are trading opens and then goes up near its day's high but drops the rest of the day and closes near its day's low. What this tells you is that professionals are fading against your position and so you need to get out. - 23223
Let me jump right into this and teach you this incredibly profitable secret.
The closing price reflects the final consensus of value for the day. This is the price most people look at when they get off work or when they print their daily charts at the end of the day. It is especially important in the futures markets, because the settlement of trading accounts depends on it.
Professional traders trade throughout the day. Early in the day they take advantage of opening prices, selling high openings and buying low openings, and then unwinding those positions as the day goes on. Their normal mode of operations is to fade"trade against"market extremes and for the return to normalcy. When prices reach a new high and stall, professionals sell, nudging the market down. When prices stabilize after a fall, they buy, helping the market rally.
The waves of buying and selling by amateurs that hit the market at the opening usually subside as the day goes on. Why? Most traders on the west coast have a day job they have to go to so they log-on in the morning before work, put on a trade, then check it when they get home. Even traders on the east coast will put on a position at market open while at work and then check it at the end of the day. Near the closing time the market is dominated by professional traders.
If you know this, you have a gigantic advantage! How? This means that opening prices reflect the consensus of amateur traders while closing prices reflect the consensus of professional traders. Study almost any stock chart and you will discover how often the opening and closing ticks are at the opposite ends of a candlestick. This means that amateurs and professionals are usually on opposite sides of a trade. The side you want to be on is the side of the professionals because they have more money. Trade with the professionals and not against them like most market participants.
You should consider closing out your long position if the stock you are trading opens and then goes up near its day's high but drops the rest of the day and closes near its day's low. What this tells you is that professionals are fading against your position and so you need to get out. - 23223
About the Author:
I hope you make a ton of cash in the stock market after reading this article. For more of Lance Jepsen's free stock trading advice please visit stock market
posted by X - Men @ 2:23 AM
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