Holding Overnight Positions by Anthony Trongone, Ph.D.
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.
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
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.