trade your trade brother, whatever works for you. I personally do the exact same thing, I daytrade same day QQQ options, no overnight holds.
Follow the big money, here's their basic weekly "schedule": Mon-Tues - accumulation days Wed - news Th-Fri - profit-taking days If you think Mon & Fri are bad, it's simply that: 1)-on Monday that you are not waiting long enough to enter (they will sell down from the open to 10am-or later sometimes). Wait til 10am to enter, you won't get caught so easy. 2)-on Friday, there's a point at which the Dow heads south after it's "hump" of the day. From that hump, you don't want to be on the backside, since they'll sell down. You're just not scouting for the Dow top on Friday. If you're out at that top, you'll be okay. At the end of day Friday, if you're out clean, you may see a few bounces off the selldown at 2:30, 3pm, 3:30, etc Hope this helps!
Not actually fake-outs. It's called "meeting the market," where the brokerages execute all their overnight orders in the most profitable way (selling high to their buy orders, cashing out low their overnight sell orders), that's why you see the sudden spikes and drops at the open. The screw their own clients, selling exit orders low, filling buy orders high. They make a lot of money every day doing it, since their customers don't really ever catch on because it all happens so fast. Basically, all the orders for "best price" are a blank check for the brokerages to steal. Once they're done, the market settles and takes shape. That's the game.
well put. But in effect, they are faking out their clients LOL. But yeah, you explained it better than i did
They pile up all the clients orders overnight, then match up the buys and sells for max gain on a execution program, then fire them through at the open at lightning speed to win both ways. Their clients, who placed the orders, instead of trading them themselves, never even see what happens, they just accept the fill as a long hold, and figure the broker did their best for them (in reality, not), since many get filled with in-house shares to create an extra spread, using the opening price as the fill price, though many of the shares used to fill were picked up cheaper in the pre-market just before the open, so the brokerage never even has to hold them long.
No, I'm not a bot, just a trader with a lot of understanding of what moves the markets and how they are manipulated. Since the stock market is 100% manipulated, 100% of the time, it's important, if a trader wants to survive, to know "what's the game behind the game?" Not a bot, just a huuu-mon.
Good points.... I try to avoid first 5 minutes, that's when most whipsaw due to MOO (market on open) orders are cleared. True re lots of fakeouts til 10, though often many of the day's best orb/open range breakouts happen. The #1 consistent pattern to be aware of is the 10am reversals, which occurs at 10am, give or take a few minutes. Look at the last month of S&P (or SPY) charts to see. Most of the time you see at least a consolidation, often a V or A reversal. That's very useful, eg if market's going up right before 10, I don't trade long size since I know it often pivots back down. I have saved a fortune dodging false breakouts near this time, I hope it helps.
The open is very volatile, and if you trade it, you need an extremely fast and responsive platform, which I have. It allows a spread of bids to be dropped over any range, any share quantities, on one-click, with no automation, in 1/10the of a second. All bids are removed on one click, with equal speed if a re-set is needed. It's the only way to trade "chaos," especially on scary Dow drop days, like in March 2020. Generally, since MM and brokerage algos are not that original, 10am and 11am are "known tops," 10:30 is a known trough. Always either 10am or 11am will be a top, so if 10am is not, you can bank that 11am will be. I always enter the session expecting a 10am top if the Dow futures are friendly (green), and a walkdown to 10am when red (almost always on Mon-Tue, accumulation days, where news freezes traders, then they sell down quick, get the panic started, accumulate and flip back into the market). In short, if 10am is a drop, 11am will be a top. Both are also often tops. Open breakouts shoot up because there's little resistance of sell orders stacked above the open price, so a quick buy up by MMs catches everyone sleeping, getting them to chase, fueling the pre-planned "launch."