DaytradeTeam Profitzzz
Recaps of DaytradeTeam Trading Systems Performance
Tuesday, August 23, 2005
Playing a Gap Open in your Favor
The stock you are holding has been uptrending slowly but surely since entry. It's looking pretty good, but you are starting to get the itch to take profits and move on to other opportunites---then it happens:
Your stock gets great news and gaps up huge....
Great! Big profits! Then it hits you....what do I do now?
Playing a gap open is one of the most difficult decisions that swing traders will face. Do you take profits right away? Let the stock ride and look for more upside?
As usual, the answer lies somewhere in between. DaytradeTeam traders recommend taking half of your position off the table and selling into the open. This will get you the locked in profits that you deserve, while still allowing you to hold onto a proven winner.
Once the day of the gap is over, simply put in a good til cancelled stop loss on the remainder of your position just below the low of that day. This will make the stock "prove" that it is going to fill the gap before pushing you out. If the stock makes a surge higher within the next two trading days on heavy volume, watch out--you've got a rainmaker on your hands!
Your stock gets great news and gaps up huge....
Great! Big profits! Then it hits you....what do I do now?
Playing a gap open is one of the most difficult decisions that swing traders will face. Do you take profits right away? Let the stock ride and look for more upside?
As usual, the answer lies somewhere in between. DaytradeTeam traders recommend taking half of your position off the table and selling into the open. This will get you the locked in profits that you deserve, while still allowing you to hold onto a proven winner.
Once the day of the gap is over, simply put in a good til cancelled stop loss on the remainder of your position just below the low of that day. This will make the stock "prove" that it is going to fill the gap before pushing you out. If the stock makes a surge higher within the next two trading days on heavy volume, watch out--you've got a rainmaker on your hands!
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