If youve been trading for some time now, youve either noticed it for yourself
, or youve heard a seasoned trader say it. The reality of it is this. In the morning, the markets are not yet established with sizable bids and offers. So what ends up happening is that the retail accounts that still put their orders in with their brokers dont have a grasp on what the market or their stock is doing during the trading day. And because theyre not active traders they usually make their decisions after the trading day is over. Orders are then placed by these accounts after the market close and are executed at the market right at the open. Market makers then capture these easy bait-like orders by suckering in immature traders into what looks like selling or buying depending on the situation.
Then after 15- 20 min of the market being open, professional market participants begin digesting news and start to anticipate market strength and/or weakness therefore placing orders that fill the books of level 2. Keep in mind that the market and its innerworkings are a combination of psychological and social factors. Thinking shapes our reality even if the reality of the market doesnt reflect present economic conditions. The point is, is that thinking and surrounding yourself with the ideas of successful people can increase your chances of making money.
Star Alliance Capital Partners would like you to invite you to our free day trading webinar. At this free webinar you will learn the basics of trading and we will show you how a professional trader can make money from stock market movements. For more information and attend to our Free On line Webinar please visit http://www.dimensiontrading.com/staralliance/