Trading the open is one of the most dangerous times of day to enter new positions. Armed with technical reference points such as short term resistance from the prior day, “floor trader pivot levels” and a VWAP, this video explains the thinking behind a purchase of $MYL right after the market open. The initial bounce provided an opportunity to sell half the position in an attempt to lock in a small profit and reduce risk on the trade. A stop was placed on the balance of the position and this stop was executed with a fractional gain. Currently, the stock is below the entry point which shows the value of strong money management at the onset of the trade. The ultimate goal for the trade was higher, but the market indicated it was not time for the stock to rally. Strong money management skills allow a trade which may have been held at a loss to be exited with profits.
If you are unfamiliar with pivot levels view this Pivot Levels Tutorial