Stocks & Commodities V. 25:4 (31, 87): Q&A by Don Bright
SINCE YOU ASKED
Confused about some aspect of trading? Professional trader Don Bright of Bright Trading (www.stocktrading.com), an equity trading corporation, answers a few of your questions. To submit a question, post your question to our website at http://Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S&C.
How do people adjust their trades if the market is expected to open higher or if the market is expected to open flat or lower? The night before, I do my research
and create a list to trade but donít see how to find a way to integrate it with the market open situation. Any suggestions?ó Jim Clark
We monitor the S&P futures contracts (e-minis) after adjusting the spot price to fair value, right before the market opens (see www.stocktrading. com/ Tradinginfo.htm for an example). This gives us the expected percentage of up or down opening points (extremely accurate by definition). To better understand
fair value calculations, check out www.programtrading.com and www.indexarb.com.