If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction of the market can be tricky and just plain confusing at times, but Larry’s expert opinion keeps it simple and straight-to-the-point.
If you like this article, Larry’s also agreed to give you free access to his award winning book.
Today he’s going to talk about how the open of the market can make or break your trading day.
The open for any trading session can set the tone for the day’s trade. Barring any major fundamentals, it can signal whether or not traders are going to be primarily bearish or bullish, or neutral and cautious. The start of the day can set the stage for your own trades as well. Starting off with a winning trade or having the market move in your favor at the beginning of the day gives you a confidence level that can propel you to an extremely successful trading day. Having a negative tone or having the market move against your analysis and any open positions will probably color your judgment for the rest of the day. [Read more...]