Trading Techniques  |  MAY 2001

Trade The Opening’s Reaction by Perry R. Stevens, MD, MBA

The Early Bird Does Get The Worm Trade The Opening’s Reaction Here’s a simple, profitable trade you can make during the opening 30 minutes of the market. by Perry R. Stevens, MD, MBA The first 15 to 30 minutes after the stock market opens are usually the most volatile and the trickiest time of the day to make a trade. During this period, traders and investors alike are sizing up the market and eyeing specific stocks to buy or trade and may even take action. Any news that has come out since the market’s close of the previous session or prior to the opening has been digested and interpreted. Analysts are upgrading and downgrading, and the talking heads on the financial news shows are also weighing in with their comments. In short, the opening minutes of the market can be volatile, and for this reason, many traders prefer to sit back and wait until a trend develops.

by Perry R. Stevens, MD, MBA