For intraday trading, the previous day's closing price matters more than the opening price. A stock that gaps up can look profitable on your screen even though it's still below yesterday's close, creating a false sense of gains. Check if the current price is above or below the prior close to see your real daily performance.
In terms of then the execution side of things, what are we looking for? Big level that I always want to keep track of is right here. If this is like the previous closing line, if this is. This whole thing is an intraday chart. Because the stock closed, say on a Monday at 120, all they know the next day is if the stock is up or down based on this 120 level. So it's at 110, it's going to be down 10 cents a day. If it's up, you know, 130, it's going to be up 10 cents a day. So the previous day's close is huge. And I say that because so many people want to use the opening price. So if the stock gaps up from, you know, 120, let's say 150 up here. Right. Well, someone could buy it at 100, 150, it can trade down like, say it's like a spike. It tries to go a little bit, all of a sudden ends up 130. And someone who bought might still think they're up because it's still green in the day. It'll just show them, oh, up 10 cents. They like, oh, good, I'm up. But if they bought at 150 and the stock is still technically green, it doesn't matter. They're down 20 cents. Yeah. So I want to know when is it actually going to show people on their software, regardless of their position? We are red on the day we are trading below, you know, the previous closing price. Gotcha.
