The WSJ ran an article called Traders Who Skip Most of the Day on Friday and made it seem like it was a novelty. Hmmm?
I think there are many more traders trading exclusively during the Open/Close than the WSJ would know or let on. The Open and the Close are the two most liquid times of the day.
You can start at 8 am ET and work 2 hours. Put your stops in and come back at 2 or 3 pm ET. That would give you 4-5 hours during the day. This is especially true for an intermediate-term or long-term trend follower. Despite what you might think, watching your screen all day has no effect on the securities you trade or are looking to trade. The market is going to go where it’s going to go.
Early in my career when my cash-flow was tight, I relied solely on EOD (end of day) data. I was up over 50% for the year. You can still do that today unless you have a judge in your head that won’t allow you to do it.
I would absolutely hate to work a mere 2-3 hours a day…because then I would be forced to pick up golf!!
Or just watch the Golf Channel…
Thanks for the posting Michael.
It reminded me about the Victor Niederhoffer book “The Education of a Speculator”. I got several insights from the book, and two come to mind straight away. One was the 9.00 rule, and the other was Caroline Baum.
Niderhoffer recommended Caroline Baum’s columns on Telerate, and from that point on in 1998 I have read Caroline Baum as she went on to further prominence on Bloomberg. She is a terrific journalist and well worth reading for those not familiar.
I met Caroline Baum for dinner with a friend of mine in New York a few years ago – and she was as engaging and erudite in person as she is in print.
The 9.00 o’clock rule is an observation of Niederhoffer’s that it is uncanny how many times the high or low of the day occurs either side of 9.00. I have found this rule to be very useful in short term timing in the stock market. It is not universal “rule” but it works often enough that should give traders a bias in action. As is often the case, the run up to the 9.00 time period is important in determining how much weight to give to the rule.
Simon Kerr, London.