The key to making good trading decisions is to pick good primary signals and good confirming signals.
If the open is very bullish (more than 11 points up) then get in ASAP if you are planning to get in. If you are short and want out then get out ASAP. If the open is very bearish (more than 11 points down) then get out ASAP if you want out of a long position. If you want to go long then wait until the afternoon. If you are short then you may want to consider taking profits before the market closes.
An Exchange Sweep occurs when a big order suddenly cleans out all the bids or offers within a price range across all the markets that a stock is traded in. This will cause a very brief spike down or up in the price, depending on if it was a buy order or sell order. If you run with a live stop loss that is near the current market price, then you may get taken out of your position by this spike. It is better to run with a live stop loss if your positions are unattended, but if you are there to watch it then using a manual exit will avoid exposure to an Exchange Sweep. If an Exchange Sweep occurs then allow 10-30 seconds for the price to recover. If it has not recovered by then or if it is trending out of control then you should exit.
Sent by TheTrini's Mini
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