ONLINE STOCK DAY TRADING TIP: THE 3:52 PLAY - CAPPING OFF THE DAY WITH A FINE CIGAR

THIS IS WHERE THE OTHER GUY STARTS TO PANIC

The 3:52 play is a setup I discovered while working in an online stock day trading room observing over 100 other online stock day traders going through their daily gyrations with the online stock day trading market. It is commonly known amongst traders that the 3:30 p.m. Eastern time zone is a key reversal point in the online stock day trading markets. What was fascinating is that I would watch this room full of online stock day trading stare at the bounce (or sell off) that would start at 3:30, and then they would wait, wait, and wait some more. They would wait for confirmation on the online stock day trading, wait for an indicator-based buy or sell signal, wait for their mother to call and tell them it was ok, or whatever. The point is they would wait to jump in on the online stock day trading move. Finally, they would succumb to the pressure to get in, and jump in on the move just as it was running out of steam. I would spend the rest of the session watching in fascination as they pointed, gyrated and yelled at their computer screens as the online stock day trading markets drifted against them. Often times they would wait until the last possible minute to get out of their online stock day trading S&P futures trades, which is 4:15 p.m. Eastern. They would wait in the hopes that the markets would come back to them, and they spent this brief session praying that their online stock day trading position would work out. Sometimes it did, but often times it did not because there were too many of them trapped and hoping for the same online stock day trading move. As the online stock day trading markets neared the 4:15 p.m. time frame, they had no choice. They could not wait any longer and they were forced to close out their online stock day trading positions. Like rats on a sinking ship, these online stock day traders would all head for the exits at once. If they were long, they would all be selling at once. If they were short, they would all be buying at once.

The interesting part of this online stock day trading is that the liquidity dries up after 4:00 p.m. Eastern. With the decreased liquidity that occurs from 4:00 p.m. -- 4:15 p.m., these groups of online stock day traders can easily cause exaggerated movements in the markets in the final minutes before the closing bell. This causes the online stock day trading markets to move hard against them. I watched them do this day after day, assuming that one day they would catch on. They never did, and after a while I would just sit there and do the opposite of what they were doing, and while they were crying I was cashing in. This same setup continues to work today and it is something I do nearly every trading day. Like a Single Malt Scotch after a Filet Mignon, it's a great way to cap off a trading session.