{"id":498,"date":"2005-07-13T18:50:15","date_gmt":"2005-07-13T23:50:15","guid":{"rendered":"http:\/\/selfinvestors.com\/tradingstocks\/mail-bag\/my-response-to-confusion-about-trading-in-the-first-hour\/"},"modified":"2005-07-13T18:50:15","modified_gmt":"2005-07-13T23:50:15","slug":"my-response-to-confusion-about-trading-in-the-first-hour","status":"publish","type":"post","link":"https:\/\/selfinvestors.com\/tradingstocks\/mail-bag\/my-response-to-confusion-about-trading-in-the-first-hour\/","title":{"rendered":"My Response to Confusion About Trading In the First Hour"},"content":{"rendered":"

My Response<\/strong>:<\/p>\n

Just wanted to discuss trading in the first half hour a bit so there
\nisn’t any confusion about my strategy.  If you’ve been a member here for
\nawhile you know that I won’t make a trade in the first half hour to hour
\nwhen purchasing a breakout.  However, there will be times when making a
\npurchase in the first few moments of trading will be advantageous.  When
\na stock breaks out and makes a significant gain (such as in the case of
\nDCAI which vaulted 9% yesterday), it will often pull back significantly
\nin the first few minutes of trading at some point  over the next couple of
\ndays as traders take quick profits or the stock gets a valuation downgrade
\nfrom a brokerage (what I like to call a "red tag sale"!) and then recover
\nalmost as quickly.  If you missed a breakout the previous day or were
\nholding out longer to make the stock "prove itself" it can allow you to get in
\nat a price closer to the original pivot.  So trading may occur in the first few
\nminutes under special circumstances.<\/p>\n

Why not just purchase the stock at the breakout, which in the case of
\nDCAI would have been 24.78?  You could have purchased at this price but
\nI believe it would have been a riskier trade.   Considering the stock
\nfailed to breakout successfully the first time I made the purchase, I
\nwanted the stock to prove itself yesterday by closing the day above the
\npivot, which it did.  Sure I take the chance of the stock getting away
\nand missing the trade completely, but it’s a risk I’m willing to make.
\nThere are always other opportunities.<\/p>\n

If you look at Grupo Aeroportuario (ASR) in the first few moments of
\ntrading this morning, you’ll see it made a similar move.  The scenario
\nwas a bit different in that the stock was continuing the reversal at
\nresistance of 35 that it began yesterday, but it too returned to near
\nthe pivot point in the first moments of trading today offering another
\nchance to get in.  It wasn’t a trade I made in the Model Portfolio, but
\ngetting in at 33.25 or so would have provided a nice entry point on a
\ntechnically superior stock.\n<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

My Response: Just wanted to discuss trading in the first half hour a bit so there isn’t any confusion about my strategy.  If you’ve been a member here for awhile you know that I won’t make a trade in the first half hour to hour when purchasing a breakout.  However, there will be times when … Continue reading My Response to Confusion About Trading In the First Hour<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-498","post","type-post","status-publish","format-standard","hentry","category-mail-bag"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/posts\/498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/comments?post=498"}],"version-history":[{"count":0,"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/posts\/498\/revisions"}],"wp:attachment":[{"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/media?parent=498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/categories?post=498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/tags?post=498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}