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TSBTV#58 - Trade the Open or Wait?

TSBTV#58 - Trade the Open or Wait?

Quite often I’m asked by new members of the premium video whether or not I wait for a designated period of time after the opening bell before taking trades.

This is most often in relation to day trading, and it’s understandable given that there does tend to be some initial “noise” after the opening bell rings.

But my answer is always the same - NO.

I have 2 reasons for taking the trades as they trigger, and in this episode I’ll explain them to you and run through some examples from today’s session.

Hopefully if you’re on the fence as to whether to trade or wait early in the day, this can help you decide.

(Be sure to click the full-screen option for best viewing.)

Hope you enjoy the show! Thanks for watching and subscribing, and feel free to post your ideas and comments down below.

Trade like a Bandit!

Jeff White
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Charting Program

2 Responses to “TSBTV#58 - Trade the Open or Wait?”

  1. Simon Says:

    great video as always…thanks…

    i trade off the 30min chart using candlesticks. currently i have a closing candle rule where unless my entry price is broken on a closing candle basis i don’t buy. i do the same with exiting my trades. as with all systems, i find it works sometimes but always fails other times…i’ve stuck with the closing candle system because i feel it helps knock out whipsaw moves, gives me more time to analyze the trade again so i won’t trade emotionally, and gives me a good idea about the strength of the breakout or breakdown. problem is of course that i can miss some big moves at the open or even intraday. end of day closing candles have psychological significance because of day traders exiting positions but i don’t think there is one for 30min candles so i wonder if i can making a fatal mistake in waiting. i would also like to mention that i tend to draw support, resistance, and trendlines with the body of candles and normally ignore the wicks…thanks jeff

  2. TheStockBandit Says:

    Hey Simon,

    First of all, thank you for the nice comments. Positive feedback is encouraging and I do appreciate it.

    Second, thank you for sharing some of your trading style. This is the place to do it. To answer you though, I think the primary key is to be consistent in whatever you do. If for you that means waiting for the end of the day, then always wait until the end of the day. Sometimes it may cost you, but other times it may save you. The key is do it consistently, and over time it will probably be like trying to manage intraday. Because the truth is that what happens next is never guaranteed - we can all only operate on the data which is already out.

    As for drawing trend lines on the body of candles vs. along the wicks, that is a little different than how I do it but that isn’t to say one is right and one is wrong. Again, the way we interpret information is one thing, but consistency is the biggest aspect. Do it that way over time, and you’ll still be able to determine worthwhile setups and signals which fit your eye, and from there it’s a numbers game based on money management.

    Keep up the good work and stop by often!