Wall Street Insider Reveals Stock Market Trick That Spits Out Money!
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.
Institutional and professional traders will trade throughout the day. Their behavior is as follows. At the opening, they take advantage of opening prices by selling high openings and buying low openings. They then close out of those positions as the trading day goes on. What they do day in and day out is to trade against market extremes, also called fading. They are betting on a return to normalcy in any given market. When a stock price reaches a new high and then buy side volume falls, they sell and push the market down. When a stock price reaches a new low and then sell side volume falls, they buy and push the market up.
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. - 23310
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.
Institutional and professional traders will trade throughout the day. Their behavior is as follows. At the opening, they take advantage of opening prices by selling high openings and buying low openings. They then close out of those positions as the trading day goes on. What they do day in and day out is to trade against market extremes, also called fading. They are betting on a return to normalcy in any given market. When a stock price reaches a new high and then buy side volume falls, they sell and push the market down. When a stock price reaches a new low and then sell side volume falls, they buy and push the market up.
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. - 23310
About the Author:
May you make a lot of money in stock trading after reading this article. For more of Lance Jepsen's free trading secrets go to stock market
posted by Mr. Forex at
1:09 AM
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