The nighttime merchant

The nighttime merchant

Are you wanting to trade, but worried that you because you are able to sit at your computer all day, ready to get in and out of trades at a moment's notice? Well, I am going to tell you that you can be successful trading stocks or options even if you're just putting trades when the markets are closed (ie at night before going to bed or morning before work). However, you must have the right system to allow this.

When I first started designing my own trading systems, I was in college and I knew there would be no time to sit and watch my trades during the day. I needed a way to earn money for trading and at the same time maintaining my peace of mind. I did not want to worry about what my trades were doing until I was able to see them.

There are actually some advantages for after-the-close trading system if it is designed. If you know that your only during opening or closing of positions at the beginning of the trading day, it is easier to design a completely mechanical system based on opening prices. There are moments when I spotted an open price, in fact, will not be met cost, but the difference is usually small (especially funds with high volume) and this is still much more precise mechanical system for building and then trying to exit or enter somewhere in the middle of the trading day.

The next question to be decided on a problem common to all traders, but especially important if you are going to place orders when markets are closed: Would you like to use market or limit orders? We as market orders most of the time, but many traders are afraid of them and many experts will tell you not to use market orders for allegedly giving the market makers or brokers excuse to "steal" a few cents from you on each trade. However, if this is true, then it is also true that when using a limit order you to tell them exactly how they can steal from you.

Say for example you want to buy the option contract at the end of trading on a price bid of 0.85 and the ask price of 0.90. Most traders will be put in the order of 0.90 limit or maybe a bit higher even if the gap opened up the next day. But what if there is a gap down? If the contract is going to open at 0.50 and you have a limit order at 0.90, it is possible that you will get filled at 0.90, where at the same time the guy with the target market will be filled in or close to 0 , 50. A 40% loss may be somewhat extreme example, but it is something to consider if you have a fear of market orders.

So I want to reiterate that it is possible to earn money by placing trades only when the markets are closed.




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