Every day trading advice for better trades

Why I do not enter stop loss orders before stock market open

I want to write this article for traders to use it as every day trading advice.

I described already in one article that I am waiting with my orders to be notified by alerts first.

I received this online stock trading advice some time ago I and it has proved as very important tool for my stock trading strategy.

One trading veteran told me that it is not good to enter stop loss orders or stock trade entry order before market open.

The main story is that "amateurs control the open, professionals control close". It means that a lot of amateurs investors are placing their orders before market open. Most of these orders are based on some "hot stock pick advice" or some "hot news" received in pre market hours.

It creates huge opportunity for market professionals to profit from these orders. It is very common that such news move stock price during premarket hours already and stock is opening with gap (price is much different from yesterdays close price).

It means that stop loss orders or trade entry stop orders of these amateurs investors are often filled in totally different price then they expect. And after first few minutes of trading , when all these orders are filled , price returns back to previous days close levels.

It is happening on daily basis. I saw it a lot of times during my trading career. So I think that this stock trading advice for online trading is very important.

Stock trading advice for online trading

• Do not enter any orders before market open to be filled after market open


• Wait 5 or 10 or 15 minutes and then enter your orders. Adjust stop loss levels or trade entry levels accordingly

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