Ten Things to do Before Wall Street Opens

Posted by M ws On Wednesday, October 31, 2012 0 comments

According to Market Watch:

The last time the U.S. market closed for two consecutive days due to weather was in 1888. So traders and investors can be forgiven for not knowing what to expect when Wall Street flips the switch on Wednesday morning.

With that in mind, Randy Frederick, managing director of trading and derivatives at Charles Schwab’s Center for Financial Research, offers 10 tips for buyers and sellers to consider as U.S. stocks take center stage again (though he clearly was not around in 1888). Not incidentally, these guidelines apply for most trading days, regardless of the weather: Read more: How one superbull would trade the market open.

Don’t deviate dramatically from normal trading routines. Follow a well-defined set of trading rules and don’t abandon them, Frederick said.
Limit risk. Make sure the amount of capital used represents a small portion of your portfolio, Frederick advised. Before placing a trade, set a dollar amount or percentage you are comfortable losing.

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