Australian (ASX) Stock Market Forum

What time of the day should you have a contingent order exercised?

Joined
Feb 18, 2010
Posts
65
Reactions
1
I know a stock can rise or fall dramatically at any time during the day. But has anyone studied the rhythm of a morning opening and afternoon close and established an ideal time to have a contingent order exercised..eg ...the default Stop Loss....Sell XYZ at 98 cents if the price is equal to or less than 98 cents between 10:10 am and 4pm or ....

Is it better on average to have the order activated after

10:30 when initial covering has worked through
10:45 market settling down
11:00 market settled
11:30 major announcements out of the way
12 noon Asian markets all opened
3 pm direction for the end of day likely indicated
3:30pm unlikely any reversal now

I use the default time but sometimes get annoyingly whipsawed out. I just wondered what others do and if there’s something better I should try.

Thank you for your help
 

skc

Goldmember
Joined
Aug 12, 2008
Posts
8,277
Reactions
304
I know a stock can rise or fall dramatically at any time during the day. But has anyone studied the rhythm of a morning opening and afternoon close and established an ideal time to have a contingent order exercised..eg ...the default Stop Loss....Sell XYZ at 98 cents if the price is equal to or less than 98 cents between 10:10 am and 4pm or ....

Is it better on average to have the order activated after

10:30 when initial covering has worked through
10:45 market settling down
11:00 market settled
11:30 major announcements out of the way
12 noon Asian markets all opened
3 pm direction for the end of day likely indicated
3:30pm unlikely any reversal now

I use the default time but sometimes get annoyingly whipsawed out. I just wondered what others do and if there’s something better I should try.

Thank you for your help
If you get whipsawed a lot I'd look at whether your stop is simply too tight for the range of the stock. Yes you can often close a position at a better price after it's stopped out, but then there are times when it just runs away from you and you lose an otherwise better exit.

Stock announcements can come out of the left field at anytime of the day.

If you are live in front of the screen all day, being patient with a skillful exit might be beneficial. If you are relying on your broker to execute for you... probably think really carefully imo.
 
Top