Everytime I buy on the open I seem to get the worst price...is it my luck or is buying on the open common for short term traders. As far as guidelines is it best to buy on previous day down or bad news (depending on what it is of course) or good news which will launch the stock after open (good earnings ect)?
Do you guys do it often and make initial fast gains?
Hi,
I don't think there are specific guidelines to buy on open.
Most brokers allow you to buy/sell in the regular and extended session, so if you just want to buy at the 'official' regular open price, you just have to set up a buy @ market for the regular session.
But then if you want to buy @ the pre-market, you could have a trading plan, you should know how to evaluate the price you are paying, taking in consideration the risk envolved on that trade, the targets and potencials you are waiting, the stop levels you want to setup, etc. I buy a lot of stocks on the pre-opening, hoping I'm doing a better deal then the regular open price...
;)
I generally do not buy the open, the propensity for getting a bad price is relatively high as many people out there are trying to jump in on the next big thing, so it can play havoc with the price in the first couple of mins. I buy in the pre market if I think conditions merit it (e.g. I bought IIJI in pre a couple days back). I prefer a controlled entry most times so I'll watch a 5min chart with 9ema on it so that I can calmly enter when there appears to be support/basing or the chart says to me 'go'. Sometimes that will be a market order or sometimes I'll go limit with my calculated entry price.
All that said, some stocks just require a good old plunge when the momo is hot.
Confused ??? or what ;)