Millionaire Trading Secret That Shoots Out Cash Like A Broken ATM!
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 closing price is the value set for a given stock by all market participants trading that stock. It is the final consensus of value assigned to a stock on any given day by the crowd. It is the price everyone sees after work. It is the final price displayed on all daily stock charts people research at the end of a given trading day. In the futures market, the closing price is very important because trading accounts are settled based on it.
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.
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.
If a stock opens and runs up near its day's high at market open, then falls the rest of the day and closes near its day's low at market close, you want to close out your position if you are long. This is your first clue that the stock has run up enough to get the attention of professional traders who are fading against your position. - 23217
Let me jump right into this and teach you this incredibly profitable secret.
The closing price is the value set for a given stock by all market participants trading that stock. It is the final consensus of value assigned to a stock on any given day by the crowd. It is the price everyone sees after work. It is the final price displayed on all daily stock charts people research at the end of a given trading day. In the futures market, the closing price is very important because trading accounts are settled based on it.
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.
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.
If a stock opens and runs up near its day's high at market open, then falls the rest of the day and closes near its day's low at market close, you want to close out your position if you are long. This is your first clue that the stock has run up enough to get the attention of professional traders who are fading against your position. - 23217
About the Author:
I hope you make a ton of money in the stock market after reading this article. For more of Lance Jepsen's free trading secrets please visit stock market
posted by X - Men @ 2:25 AM
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