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Strategies & Market Trends : The Final Frontier - Online Remote Trading

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To: Richard J. Byrd who wrote (164)9/27/1997 9:04:00 AM
From: TFF   of 12617
 
Richard: the first hour typically is dominated by the open. Overnight orders create a backlog which must be sorted out in the market. This phenomenon tends to push the price of stocks up or down at the opening. Studies have shown that the greatest volatility exists at the open,therefore so does the greatest risk. Most daytraders shy away from the opening simply because it s very difficult to get a good fill.

I usually wait for a least 15 minutes until all of the DOW 30 components have begun trading, and a better picture of the day's trading can be had.
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