One simple big day trading question

[rgdm]

OK be kind as I am new to the forum although I have day traded spread betting UK shares for approx 12 months most days.

Is there anybody here who is consistently profitable just by trading the open (possibly immediately the market opens at 8am) for an hour or so to 9am ish

i.e. not sat in front of a screen most of the day?

I actually use automated trading but I am interested to hear from manual or algorithmic/auto traders.

I have found good profitable trades where shares move 2 or 3 % and I have made good profit but there are also many unprofitable trades where the the price moves maybe 0.25% the wrong way.

The net effect on my account is break even or an overall loss.


Thank you for any feedback in advance.

 

[NVP]

I trade forex pretty profitably from 6-8am most mornings ?......and then start work as consultant for rest of day .........and I share comments on my thread most mornings here at T2win

somedays its pretty sluggish but the 7am bar will normally liven proceedings

I prefer to trade like this than watch paint dry on Longer TF trading

sorry but havnt traded equities for years as Forex offers more flexibility for me

N

 

[Billy07]

The break even strategy is working good for me when open the market. I place pending orders around 2 main levels (1 support and 1 resistance). The target price equal with the distance of these two level, the sl orders being placed near behind the entries. So this is simple strat but works... I don't write exact rules because the attributions up to the market situations and the traded product.

 

[Fisherfisher]

The break even strategy is working good for me when open the market. I place pending orders around 2 main levels (1 support and 1 resistance). The target price equal with the distance of these two level, the sl orders being placed near behind the entries. So this is simple strat but works... I don't write exact rules because the attributions up to the market situations and the traded product.

Its good to have a simple system to be able to stick to. What type of win loss ratio is it producing?

 

[zaysev36]

I haven't tried trading consistently specifically on the open, but a friend of mine manages to make some really nice profits, since it's the most volatile time on the market. The thing is to be able to define stocks that are going to have some major movement on the open.

 

[rgdm]

The break even strategy is working good for me when open the market. I place pending orders around 2 main levels (1 support and 1 resistance). The target price equal with the distance of these two level, the sl orders being placed near behind the entries. So this is simple strat but works... I don't write exact rules because the attributions up to the market situations and the traded product.

So you are basically trading a break above the resistance line or a break below the support line.

I agree simplicity is the best approach but I just find that the number of false break outs which stop out with losses marginally exceed the profits made by real break outs.

As zaysev36 said "The thing is to be able to define stocks that are going to have some major movement on the open." - this clearly is the key but break outs and significant price moves of 2-3% in the first few hours of trading only happen every few weeks/months in my experience so I may get that big win only once a month or less.

It is like surfer waiting for that big wave - they are very rare and due to the way brokers have their spreads set up my profits are quickly reduced.

I am coming to the conclusion that it is not possible to consistently profitably trade UK shares with spread betting at the open for just an hour or two per day?!

The brokers seem to have it all sewn up or am I wrong?

 

[Billy07]

Its good to have a simple system to be able to stick to. What type of win loss ratio is it producing?

7 out of 10 winner trades.

 

[Billy07]

So you are basically trading a break above the resistance line or a break below the support line.

I agree simplicity is the best approach but I just find that the number of false break outs which stop out with losses marginally exceed the profits made by real break outs.

As zaysev36 said "The thing is to be able to define stocks that are going to have some major movement on the open." - this clearly is the key but break outs and significant price moves of 2-3% in the first few hours of trading only happen every few weeks/months in my experience so I may get that big win only once a month or less.

It is like surfer waiting for that big wave - they are very rare and due to the way brokers have their spreads set up my profits are quickly reduced.

I am coming to the conclusion that it is not possible to consistently profitably trade UK shares with spread betting at the open for just an hour or two per day?!

The brokers seem to have it all sewn up or am I wrong?

I'm not talking about UK shares. I use it carefully and not so often ( I like to use it right after a big new release when the market decide where it's wanna go )

It's just one of my strategies.

 

[jjames69]

meh, to many fake outs in the first 30 min for me. i'd rather trade the last hour.

 

[zaysev36]

meh, to many fake outs in the first 30 min for me. i'd rather trade the last hour.

Well, it's fake outs that make this period so volatile and thus so potentially profitable. Trading on the open does take steel nerves, I've tried it once and got washed off in like 4 minutes