About First Hour Trading
First Hour Trading is a day trading system invented by Manny Backus.
Manny has been trained to become a highly skilled chess player since childhood. However, during his teenage years, his passion for chess took a backseat to his obsession with online trading. After participating in several stock-picking competitions, Manny decided to parlay the tactical ability, the power to focus, and the schematic thinking that he learned from playing chess into the skill of picking winning stocks.
Recently, another title has been added to Manny's ever-growing list of trading nicknames. People have also started calling him "The One-Hour Trader" because he created another program called First Hour Trading.
Over the period of a year, Manny dove into the world of "Bull Trap" stocks.
Bull Trap (DEFINITION) - A situation that occurs when the price of a stock moves above a significant level, triggering buy signals -- but thereafter, quickly reverses course. When the price reverses, the bulls -- that is, investors who believed the stock price was on an uptrend -- and who acted on the buy signal, are "trapped" with losses. This brought about the term "bull trap."
EXAMPLE: Prior to the opening bell, all market indicators point to a very strong opening for the Gigantic Computer Company (GCC). A large quantity of buy orders placed for GCC stock prior to the market opening cause the price to rise sharply at the opening bell.
"Bull trap" stocks are golden opportunities for investors to make a killing in the stock market during the first hour of trading.
Many times in this situation the opening price is higher than justified -- and this creates a markup or "gap" up in price. In other words, the stock is opened excessively high to entice investors, who act upon the buy signal because the stock shows such strength at its open.The problem is, when the initial demand subsides, and the stock was clearly overbought, it goes through a price correction and plummets to its justified price. Thus, the way to make money in this situation is to short sell just before it reverses, right?
If it were that easy, everyone and their brother would be making money on this pattern. There is a reason why all day traders on the planet aren't cashing in on this system every day. It's because not all stocks behave in the same way:There are exceptions to every pattern.
On your way to making a killing, you could also get killed (i.e., lose a lot of money) if you don't know what you're doing. The movements of these stocks are difficult to predict.
Keep in mind, Day trading can be a highly risky business. This is a warning that even the Securities and Exchange Commission (SEC) displays on their website.
The SEC states: "Most individual investors do not have the wealth, the time, or the temperament to make money and to sustain the devastating losses that day trading can bring." They further warn that "Day traders typically suffer severe financial losses in their first few months of trading, and many never graduate to profit-making status."
That's pretty sobering, isn't it? Makes you want to rethink getting into day trading at all -- seeing that the odds are stacked against you -- doesn't it?
Manny doesn't promise or guarantee that you will win on every single trade. No system has a 100% success rate. He admits that there will be days that you'll break even, or even lose money. This is a reality that any potential investor will have to face.
In conclusion, First Hour Trading is a service that doesn't promise exaggerated profits and is not a get-rich-quick scheme. Also, this service has a limit on how many subscribers may join. This ensures that the service itself doesn't influence the market's price as many services intentionally do.