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- the exact stock or option strategy to trade
- my limit price recommendation
- protective contingency exits
- a profit-taking exit strategy
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The open is for the rookies and the close is for the pros…
Old Floor Trader Saying, Unattributed
My long-time friend Brad Martin was a floor trader in the futures pits of the Chicago Board of Trade and the Chicago Mercantile Exchange for over a decade and a half.
He was a savvy guy, and was of that rare breed that could sense changes coming. He moved off the floor and started his own day-trading room in the late 1990s, just ahead of the day-trading boom. He then added real estate development to his repertoire a few years later, and rode several projects (that he managed himself) all the way up to top of the real estate bubble. Most notably, he sold a fully permitted residential development to a big housing construction conglomerate in 2007 – not a bad exit for that “trade”…
Brad’s many years on the floor trading futures gave him tons of great stories, and more old “trader sayings” than you could shake a stick at – including the quote at the top of this article.
Brad explained that opens are when “retail” traders (non-professionals) want to get in or out of trades. This usually makes trading action quite chaotic with price bouncing all over the place. On the other hand, it’s pros who are in control of the time leading up to close as they position themselves for the end of the day, deciding whether they want to carry positions overnight or not.