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

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To: TFF who wrote (2299)1/11/1998 9:25:00 AM
From: Eric P  Read Replies (2) of 12617
 
Holding Winners Overnight:

Certainly, holding winners overnight entails a much greater risk than simple daytrading. While the market is open, a trader can get out of a position at anytime (unless halted), without the danger of overnight gaps. Personally, I do not hold daytrading positions overnight.

However, it all comes down to risk and reward. If a trader finds that holding a high momentum position overnight tends to gap in his favor consistently in the morning ==> Then why not?

The object should be to consistently make money, while recognizing and minimizing return adjusted risks. The higher risk in holding infrequent overnight positions may be warrented.

Happy Trading,
-Eric
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