Wall Street Insider Reveals Stock Market Trick That Spits Out Money!
In the stock market, the opening price is not as important as the closing price. The closing price is king. Knowing that the closing price is more important than the opening price will give you a major advantage over most stock market traders. You are about to learn how to pull crazy profits out of the stock market from this simple yet profound truth.
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 traders like you and I behave very differently. Amateurs like us usually trade at market open and then drop off as the day progresses. Most amateurs have to go to work and so they trade on the west coast at market open before work. They don't check the trade again until after work when they get home. Even traders on the east coast will sneak in a buy or sell at market open while at work and then not check their trading account again until the end of the day. At market close, the participants who are still trading are mostly professional traders.
Knowing what time of day the amateurs trade and what time of day the professionals trade gives you a huge advantage in the market place! Think about it for a minute. Closing prices reflect the opinions of the professional and institutional traders while opening prices reflect the opinion of amateur traders. Look at almost any stock chart and you will see how often the closing and the opening ticks are at opposite ends of a stock's daily candlestick. This tells you that professional and institutional traders are usually on the opposite side of the trade as amateurs are. So which group should YOU trade with? Why the group that has the most money to invest in the stock market because they can move the stock the most. This means that you want to be on the side of the trade that professionals are on. Trade with the professionals, not against them.
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. - 23222
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 traders like you and I behave very differently. Amateurs like us usually trade at market open and then drop off as the day progresses. Most amateurs have to go to work and so they trade on the west coast at market open before work. They don't check the trade again until after work when they get home. Even traders on the east coast will sneak in a buy or sell at market open while at work and then not check their trading account again until the end of the day. At market close, the participants who are still trading are mostly professional traders.
Knowing what time of day the amateurs trade and what time of day the professionals trade gives you a huge advantage in the market place! Think about it for a minute. Closing prices reflect the opinions of the professional and institutional traders while opening prices reflect the opinion of amateur traders. Look at almost any stock chart and you will see how often the closing and the opening ticks are at opposite ends of a stock's daily candlestick. This tells you that professional and institutional traders are usually on the opposite side of the trade as amateurs are. So which group should YOU trade with? Why the group that has the most money to invest in the stock market because they can move the stock the most. This means that you want to be on the side of the trade that professionals are on. Trade with the professionals, not against them.
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. - 23222
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 tips go to stock market
posted by X - Men @ 2:38 AM
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