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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: TFF who wrote (5582)	10/29/1998 9:44:00 PM
From: just bearly	Respond to of 12617

Irby, "The absence of liquidity makes it it a spin of the roulette wheel." Thanks for your quick response. That's what I was thinking. I'll continue to warily research more about it. Tara

To: TFF who wrote (5582)	10/29/1998 9:48:00 PM
From: William W. Dwyer, Jr.	Read Replies (2) \| Respond to of 12617

irby, I agree with you. Pre-market buying is super-risky as things change very quickly just before and just after the market opens. I have done it several times and I believe I have mostly regretted doing so. If you feel very strongly that a stock will run sharply from the open, and you really want to be in the trade, maybe do it. However, if the stock has already gapped up 10%-20%, I would wait for the pullback at the open, then buy in lower, or pass on the trade altogether. Also, as you mentioned, selling pre-market is the best way to lock in quick profits on overnight positions, hopefully before profit-taking occurs at the open. Stocks running up strong at the end of the day, with a strong market, can be bought right before the close and held for a gap in the morning. Selling pre-market then is the safest, most conservative play. So, I look at pre-market open trading mostly to exit trades and lock in profits. Bill

To: TFF who wrote (5582)	10/31/1998 6:30:00 AM
From: H-Man	Respond to of 12617

Yep, also, there is usually not really enough volume to establish a pattern or make a reasonable assumption, SEEK perfect example, the first trades pre-market were at $25, about 10 trades Oooooucch, a few panic sellers and speculative buyers,, then 27, and open at 28+, teetering, dipped after the open then buying and a run to 31,, the pattern (Strong buying)was not really established till about 9:35 - 9:40 point - that dip post open has been a dump of 5-10% as often as not recently, especially with dissapointments,, those that bought early at 25 gambled an won (although at $25, it was a good value), those who bought at the open or just pre open, had a 5 minute period were the stock slid below where it opened, quote.yahoo.com (this link illustrates the point but is only good for this weekend)