Hey traders,
There’s a reason I don’t like to place orders right at the open. And I ESPECIALY don’t like to place market orders. Let me explain for you.
A market order is just what it sounds like: an order to buy or sell a stock at whatever the current market price is.
Sounds simple, right? But here’s the catch — you don’t control the price you get. You’re just taking whatever the market gives you, and that can be a dangerous game, especially at the open.
See, as a former Nasdaq Market Maker, I can tell you that there are plenty of traders who do both — place orders at the open and use market orders.
When you combine the volatility of the start of a new trading day with a bunch of market orders sitting there from the night before… it’s a recipe for getting ripped off.
Here’s why: The first few minutes after the market opens are like the Wild West. There’s a rush of orders coming in, the market’s reacting to all the overnight news, and prices are jumping around like crazy.
If you place a market order right at the open, you’re at the mercy of that chaos. You could end up buying at a peak or selling at a low, and that’s not where you want to be.
As a former market maker, I used to see this all the time.
Traders would rush in with market orders at the open, and I’d be there, watching the prices swing.
Market makers love this because it gives them room to raise the opening price or drop it, depending on the orders coming in. And trust me, those prices aren’t always in your favor.
That’s why I don’t like to jump in right at 9:30 AM.
Instead, I wait for 10 AM.
By 10 AM, the initial volatility has settled down. The market’s had time to digest the news, and the real trends for the day start to show.
This is when the pros start making their moves. The 10 AM window gives you a clearer picture of where the market is headed, and you can make more informed, calculated trades.
It’s all about playing it smart. I don’t need to be the first one in the pool; I’d rather make sure the water’s fine before I dive in.
So the next time you’re thinking about placing an order, remember this: 10 AM is the magic time.
It’s when the noise starts to fade, and the real opportunities start to shine.
This is just one of the reasons I started my 10 AM Income Project. If you haven’t seen it, you’re missing out.
It’s the result of taking my nearly 40 years in the markets, mixing it with a team of talented programmers and creating what just might be the perfect weapon for trading the markets.
I honestly think this thing might be smarter than I am. Check it out right here. You’ll be glad you did.
Trade well,
Jack Carter
