The last few days have been a bit slow after the Open.\u00a0 We must adjust.\u00a0 One adjustment I make on such trading days is to lower my tier size after the Open.<\/p>\n
I traded HPQ on the Open (chart below).\u00a0 It held 45 and made a nice upmove to 45.25 where it was met with resistance.\u00a0 After a struggle at 25c it made a nice upmove to 65c, where HPQ failed.\u00a0 HPQ reversed and traded down to 45.06.\u00a0 And then it traded back to 55c.\u00a0 There were some nice moves to catch on the Open.\u00a0 I was trading with about 2-3k shares.<\/p>\n
But now its the midday.\u00a0 And I must make some adjustments.\u00a0 My tier size will be cut in half.\u00a0 And I will only wait for important levels.\u00a0 For HPQ that is above 45.65 and at 45.\u00a0 There is no money in gaming the stock in between these prices.<\/p>\n
On the Open I trade with the most size.\u00a0 During the midday I trade with the least size.\u00a0 And into the Close I trade with less size than the Open but more than midday.\u00a0 When it is slow I lower my tier size.\u00a0 If I am trading a volatile stock I lower my tier size.<\/p>\n
Trading is a game of math.\u00a0 I lower my tier size when statistically my chances of a profitable trade diminish.\u00a0 And I know exactly the times and markets when my trading stats are not as good as others.\u00a0 So I lower my tier size.<\/p>\n
I will be alert into the Close.\u00a0 But I will trade with less size.\u00a0 If I find a stock that is play into the Close then I will raise my tier size only after becoming comfortable while trading it.\u00a0 Think about making these adjustments to your trading.<\/p>\n
Good luck into the Close.<\/p>\n
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