Here's what I intend to do going forward; If it is close towards
the end of day, I will place a limit order for .01 under trigger
price 1-2 minutes prior to the close. If the trade triggers and
then closes above the trigger price I will exit on the open. This
will play the odds that buy at close and sell at open is a winning
trade by percentage and if the trade triggers and closes higher I
am immediately in the black and in a good position by default.
if someone doesn't have the ability to trade after hours, the
price of SPY has often gone below the official entry price (longs)
in the days after the official entry date - see the trade
examples. If you don't get in on the official entry date,
simply enter on a later day if the price goes below the
official entry price (assuming the trade is still on). Your
trade result will be at least as good as the official trade
result.
If you have the ability trade after hours, you can: 1. Wait
until the after hours to see if there is a "buy" and buy then. The
downside would be if, for some reason, the spy climb in price
before you get a chance to buy it. however, you could buy it
anyway, as long as you can live with any jump in price. Or you
could not do the trade. 2. You could buy before the close and then
exit after the close if it turns out that there was no trade. 3.
You can do what you suggested. At this point, my decision is to
wait and buy in the after hours if its close. Its a bigger gamble
for me in one of my accounts because my Schwab account doesnt let
me do trades in the after hours until 15 minutes after the close.
there will be times when some stock's earnings will be reported
during those 15 minutes which will result in either a rise on the
spy or a decline during those 15 minutes. My "hope" is that this
occurrence is rare and that the gains and losses by the spy during
those 15 minutes average out over time so that sometimes the
movement will favor me and sometimes it will go against me. We
shall see how it works out!!
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My entry strategy going forward
Posted by turps on 2nd of Jun 2011 at 08:04 pm
Here's what I intend to do going forward; If it is close towards the end of day, I will place a limit order for .01 under trigger price 1-2 minutes prior to the close. If the trade triggers and then closes above the trigger price I will exit on the open. This will play the odds that buy at close and sell at open is a winning trade by percentage and if the trade triggers and closes higher I am immediately in the black and in a good position by default.
Pick holes in it.....sounds too rational to work
Or...
Posted by yojimbo on 3rd of Jun 2011 at 09:41 am
if someone doesn't have the ability to trade after hours, the price of SPY has often gone below the official entry price (longs) in the days after the official entry date - see the trade examples. If you don't get in on the official entry date, simply enter on a later day if the price goes below the official entry price (assuming the trade is still on). Your trade result will be at least as good as the official trade result.
Or...
Posted by burkmere on 2nd of Jun 2011 at 08:29 pm
If you have the ability trade after hours, you can: 1. Wait until the after hours to see if there is a "buy" and buy then. The downside would be if, for some reason, the spy climb in price before you get a chance to buy it. however, you could buy it anyway, as long as you can live with any jump in price. Or you could not do the trade. 2. You could buy before the close and then exit after the close if it turns out that there was no trade. 3. You can do what you suggested. At this point, my decision is to wait and buy in the after hours if its close. Its a bigger gamble for me in one of my accounts because my Schwab account doesnt let me do trades in the after hours until 15 minutes after the close. there will be times when some stock's earnings will be reported during those 15 minutes which will result in either a rise on the spy or a decline during those 15 minutes. My "hope" is that this occurrence is rare and that the gains and losses by the spy during those 15 minutes average out over time so that sometimes the movement will favor me and sometimes it will go against me. We shall see how it works out!!