Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (4965)	10/20/1999 9:03:00 PM
From: Eric P	Read Replies (1) \| Respond to of 18137

Hey EP, like to get some opinions, thoughts, and guidelines for buying Pre & Post markets... I'll toss in some of the lessons I've learned: 1) Never enter a position after the close unless you intend on holding the position overnight. Liquidity dries up very quickly after the close which can make it very difficult to exit a position without giving up a huge spead. (Don't ask me how I know this. A $12k mistake this past January taught me a lesson I'll never forget) 2) Post market trading should be mainly focused on news developments. Particularly, trying to pick off sleepy ECN quotes in a stock after a news report. 3) Premarket trading offers much greater opportunities for trading. In addition, the risk is reduced since news affecting a stock is rarely released immediately prior to the open and liquidity is constantly increasing in the premarket. 4) Preopen trading can be a great way to get a jump-start on the expected trend in a stock, before it gaps too far at the open. It is not always easy to get your premarket ISLD orders filled, or find an opposing ECN quote to enter against, but when successful, it can be very profitable. Maybe others will have additional suggestions and experiences for after hours trading. Good luck, -Eric