Timing Tricks

Date: 2006-10-23

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Title: Timing Tricks

Content:

“Timing is everything” may be one of the most famous Wall Street sayings. But as truth is, every simple principle is complicated actually. If any simple principle works, market can’t be efficient.

Simply list several tricks here:

1) On market open and close, volume is huge and price move is quite volatile. Many orders are market type. The market open rash may last for one hour till 10:30AM ET while market close period may only start from 15:50PM ET for about 10 minutes. For many stocks, one-day high or low may appear in these two periods. However, market open may be more meaningful for intra-day traders while market close is for next day.

2) Noon is when most traders are out for a break. It may last for 2-3 hours. Volume is slow and spread is usually larger. What’s more important, for a “V” day, bottom may appear in such period too. It may be safer to buy now than on market open.

3) Extended hours are important. Not only because most fiscal results are released before or after normal trading hours, the extreme volatility and uncertainty may give a good sensed trader more money than normal hours. Of course, risk is also proportional. A good bed to test your trader sense.

All for today. To be continued.......