Make The Stock Market Spit Out Money Like A Broken ATM Machine!
The closing price is not equal to the opening price when it comes to trading in the stock market. You need to know that the closing price is much more important than the opening price. You are about to discover a little known truth that will have the stock market shooting out money like a broken ATM!
Let me jump right into this and teach you this incredibly profitable secret.
The final consensus of value in a stock is reflected in its closing price. When people get off work, this is the price they look at. When they print their daily charts after market close, this is the price they see. The closing price is really important when it comes to the futures market. The settlement of trading accounts in the futures market depends on the closing price.
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.
Amateur and non-professional traders have very different trading patterns than those of professional and institutional traders. Amateur traders make up the majority of market participants at market open. As the day goes on, they slowly subside until all that is left at the end of the trading day are professional and institutional traders. Most amateur traders put on a trade at market open, before work, and then don't check it again until after market close.
Knowing this is a huge advantage! Why? Because it means that closing prices reflect the opinions of professionals. Look at any chart, and you will see how often the opening and closing ticks are at the opposite ends of a price bar. This is because amateurs and professionals tend to be on the opposite sides of trades. You want to trade with the professionals, not against them.
If a stock opens and runs up near its day's high at market open, then falls the rest of the day and closes near its day's low at market close, you want to close out your position if you are long. This is your first clue that the stock has run up enough to get the attention of professional traders who are fading against your position. - 23167
Let me jump right into this and teach you this incredibly profitable secret.
The final consensus of value in a stock is reflected in its closing price. When people get off work, this is the price they look at. When they print their daily charts after market close, this is the price they see. The closing price is really important when it comes to the futures market. The settlement of trading accounts in the futures market depends on the closing price.
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.
Amateur and non-professional traders have very different trading patterns than those of professional and institutional traders. Amateur traders make up the majority of market participants at market open. As the day goes on, they slowly subside until all that is left at the end of the trading day are professional and institutional traders. Most amateur traders put on a trade at market open, before work, and then don't check it again until after market close.
Knowing this is a huge advantage! Why? Because it means that closing prices reflect the opinions of professionals. Look at any chart, and you will see how often the opening and closing ticks are at the opposite ends of a price bar. This is because amateurs and professionals tend to be on the opposite sides of trades. You want to trade with the professionals, not against them.
If a stock opens and runs up near its day's high at market open, then falls the rest of the day and closes near its day's low at market close, you want to close out your position if you are long. This is your first clue that the stock has run up enough to get the attention of professional traders who are fading against your position. - 23167
About the Author:
May you make a lot of cash in stock trading after reading this article. For more of Lance Jepsen's free trading secrets please visit stock market
posted by X - Men @ 2:26 AM
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