How the Open Can Make or Break Your Day

March 1, 2010

As we all know, starting off with a winning trade at the beginning of the day gives you a confidence level that can propel you to an extremely successful trading day.

It all starts with your first trade of the day, and this method will show you how to get on the right side of the market minutes after the open.

The Open is actually one of the best times of day to trade if you know my special trick.

Markets Open in One of Three Ways

Balanced — if the market opens in balance many traders will stand aside looking for opportunities a little later in the trading session. This is the type of open many successful traders tend to stay away from. This open causes nothing but trouble for the average trader who tends to chase trends that may never materialize.

Out of Balance — to the Upside if the market opens out of balance to the upside, traders will look for a way to buy the market as soon as possible. This is the type of day where excellent trading opportunities can be found.

Out of Balance to the Downside — if the market opens out of balance to the downside floor traders will look for a way to sell the market as soon as possible.