Trading pro Dick Diamond says this in his trading manual:
"There are two times of day when the market has a high degree of predictability:
1. Morning (time of day) is from approximately 9:50am to 10:10am (East Coast).
2. Afternoon (time of day) is from approximately 1:50pm to 2:30pm (East Coast).
Implications Morning (Time of Day)
1. If the Market Opens Down and the contra move is weak, the market will likely go down for the rest of the morning.
2. If the Market Opens Down and the contra move is strong, the market will likely rally into pre-lunch.
3. If the Market Opens Up and has a weak contra move, the market will likely rally into pre-lunch.
4. If the Market Opens Up and the contra move is strong, the market will likely have a sell-off into pre-lunch.
Implications Afternoon (Time of Day)
Afternoon contra moves follow the same general principles as the morning contra moves. This move has the potential to be much more important than the morning. This could be an exaggerated move into the last part of the day."
Master trader Dick Diamond offers his students many similar insights and trading principles. I'll quote a few more below, but first a little about Diamond:
His hard-won knowledge includes four decades of experience -- he began his trading career in the 1960s and still trades today.
Like many successful traders, he got off to a rocky start. Diamond responded to those hard lessons by developing a highly disciplined, technical trading method. It works -- and that's how he stayed ahead of the trading game year after year.
Diamond's trading seminar is not (mainly) Elliott wave based, but be aware that EWI's Robert Prechter endorses Diamond's trading approach.
Also be aware that Dick Diamond does "eat his own cooking." In fact, he often demonstrates his approach right in front of students, by executing real trades from his own account. Seminar attendees don't learn in the abstract: they literally see what they've learned at work in a live market environment.
Here are a few more of Diamond's insights and trading principles:
- You may be right on direction but wrong on short-term timing. This could be disastrous if stops are not used!
- Never have a position in anticipation of a major report. There is plenty of time to buy or sell after the announcement.
- Close shop when you are not 100% mentally and emotionally ready to trade.
- Think for yourself. The indicators on your computer -- combined with the background work -- are all you need.
And during Dick Diamond's 4-Day Trading Course, students do learn how to perform the background work. And as you might imagine, the review of technical indicators is intensive.
Dick Diamond's Market Mentor Trading Course is for the seriously committed trading student. It's being held in Vero Beach, Florida from July 17-20. Save $250 during the Early Bird Special by reserving your seat for Dick Diamond's 4-day trading course now>>