Stock market collapse in November

[Money Money Money]

Guess what? Some "clever" chap calculated that you and other suckers will put stop loss at that value and then it is a matter of borrowing shares and forcing market down to that value, which results further drop due to stop loss orders activated and the guy takes the money from fools like you.

All stock market info MUST have a compulsory link: http://www.gambleaware.co.uk/

HTH

Lot of effort for my £58 isn't it?

[SantaClaus]

Right.... Question for you lot.

As you know i'm a little fresh to this trading lark BUT...

It seems alot of the time big changes in the market open at certain times of the day (certain markets opening).

Correct

Would it work to make a list of times that certain markets open, I think 9.30 must be one and also 12.30 and 1.30. 3 mins before hand put in 2 orders, one to buy a few points above what its on, and one to sell a few points below.

If the market shoots up/down you shouyld be covered???

Does this work?

It's called a straddle. Sometimes it will work, but a lot of times you will be "whipsawed" out of both positions with a double loss.

Also what other times do the markets open?

MMM.

Market timings are very important. Sometimes you can use them to catch a reversal. Other times you should take note of them to stay out of a trade.
It's a bit like walking a tightrope!

7:00 Europe opens - possible small reversal
8:00 London opens - possible reversal again and direction for the morning may be set.
11:00 Market goes to sleep before the US opens.
13:30 US news releases - sometimes huge volatility
14:30 US stock market opens.
16:30 London closes. Possible reversal again

Also take note of holidays. Today is a holiday in the US, Canada and France. Now look at the whipsaw that the dealers created on the GBPUSD during Mervyn Kings speech. They got away with that because of thin trading volume.

If you want to see the various economic announcements that could affect your trade, look here. The red announcements are the ones to be wary of, as are the speeches, like Bernanke, Trichet, King:

http://www.forexfactory.com/

[AtW]

7:00 Europe opens - possible small reversal
8:00 London opens - possible reversal again and direction for the morning may be set.
11:00 Market goes to sleep before the US opens.
13:30 US news releases - sometimes huge volatility
14:30 US stock market opens.
16:30 London closes. Possible reversal again

[SantaClaus]

Guess what? Some "clever" chap calculated that you and other suckers will put stop loss at that value and then it is a matter of borrowing shares and forcing market down to that value, which results further drop due to stop loss orders activated and the guy takes the money from fools like you.

All stock market info MUST have a compulsory link: http://www.gambleaware.co.uk/

HTH

Most retail traders put their stoplosses in the same place, just above or below a swing high/low. It's not hard for the dealers to knock out the weak hands in one go.

[SantaClaus]

You could put a one-touch up and a one-touch down on the stock market a little before the opening times.

If it falls or rises and touches your positions at any time, you win.

Santa probably is the man to ask.

I'm use the trading platform like Brewster's Millions.

Most of the time, binary trades (including one touches) are priced such that the probabilities are against you. I wouldnt bother with them, unless you want a pure gamble.

[Andy2]

Right.... Question for you lot.

As you know i'm a little fresh to this trading lark BUT...

It seems alot of the time big changes in the market open at certain times of the day (certain markets opening).

Would it work to make a list of times that certain markets open, I think 9.30 must be one and also 12.30 and 1.30. 3 mins before hand put in 2 orders, one to buy a few points above what its on, and one to sell a few points below.

If the market shoots up/down you shouyld be covered???

Does this work?

Also what other times do the markets open?

MMM.

if there is a gap up or gap down when the market opens , your order to sell or buy may not be honoured.

[Money Money Money]

if there is a gap up or gap down when the market opens , your order to sell or buy may not be honoured.

Thats what i was worried about.

I would only really do it if I was sat infront of the computer, so I would clear the opposite order. e.g. If the market rose and my order bought, I would then cancel the sell order.

May give it a go tomorrow as today looks like its going to be dead because of the holidays??

[SantaClaus]

if there is a gap up or gap down when the market opens , your order to sell or buy may not be honoured.

It wont be honoured. You could use a guaranteed stop, but then they place a limit on the minimum distance you may have that stop.

Thats what i was worried about.

I would only really do it if I was sat infront of the computer, so I would clear the opposite order. e.g. If the market rose and my order bought, I would then cancel the sell order.

May give it a go tomorrow as today looks like its going to be dead because of the holidays??

Trading straddles is too simplistic.
The chances are, one order will be triggered and the market will come back and take you out your stop. You would have cancelled the other order, but the order that was triggered will be a loss.

In the worst case scenario, the market could whipsaw so quickly, it will trigger both orders and take out both stops.

Believe me, I tried this method a long time ago, for news releases too.
It doesnt work.

But hey, ho. It's your money!

[Andy2]

There is no end to this rally
up up and away

[Scary]

It wont be honoured. You could use a guaranteed stop, but then they place a limit on the minimum distance you may have that stop.



Trading straddles is too simplistic.
The chances are, one order will be triggered and the market will come back and take you out your stop. You would have cancelled the other order, but the order that was triggered will be a loss.

In the worst case scenario, the market could whipsaw so quickly, it will trigger both orders and take out both stops.

Believe me, I tried this method a long time ago, for news releases too.
It doesnt work.

But hey, ho. It's your money!

Don't you do this with options? If the volatility is less than the cost of the options you lose, if it swings wildly one way or the other you don't exercise your other option.