TRADING SYSTEMS
Trading In The Hours Of Darkness
Holding Overnight Positions
by Anthony Trongone, PhD, CFP, CTA
Do you want to begin your trading day by trying to make up overnight losses? Here's a trading system that will help start the day on a positive note.As active traders, a crucial decision confronts us: Should we carry our trading positions into the morning session? Overnight trading can be a risky business, one that can cause even the most unflappable among us a great deal of apprehension.
You do not want to begin your trading day by trying to make up for overnight losses, since a poor opening will surely ruin a perfectly good trading day. Here's a trading system that will greatly improve your probability of starting the day on a positive note.
International trading
With the advent of the computer, trading has become an international affair. Since overseas trading has a direct influence on how our domestic markets will react at the opening bell, overnight trading is unpredictable at best.
Much of my success in trading in this type of environment comes from avoiding discretionary systems. By developing and using a systematic plan, I am better able to refrain from being hasty in my actions. While this particular system does not provide frequent trading opportunities, it does have a long history of success and gives the active trader a simple way to trade after the close of the trading day.
...Continued in the January 2004 issue of Technical Analysis of STOCKS & COMMODITIES
Excerpted from an article originally published in the January 2004 issue of Technical Analysis of STOCKS & COMMODITIES magazine. All rights reserved. © Copyright 2003, Technical Analysis, Inc.
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