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Nice posts, dwl. I've been studying how to catch these moves too. Your NYT initial entry on break of initial high is solid, just use a tight stop in case it proves to be a double top instead of a breakout. But how nice to catch that move from the open. My take on it is that the gap open above...

I second this motion!

I've a GTC offer for GS @ 250.70 with a stop @ 251.00 :D

How do you determine whether to fade or follow a gap? For example I've seen large gaps up crash from opening bell, and I've seen large gaps up skyrocket and never even pull back half of the continuation move from the open, taking out faders with major slippage, or leaving them in a bad "hold...

saico, one of the most dangerous things that can happen to a trader is incredible success with a strategy or in a specific market. A trader learns a gap strategy and it works like an ATM machine. The trader has nothing to compel him/her to be concerned with risk management because it's worked 30...

- $12 ES b/o range long @ 978.00 and short @ 972.50. I was an observer today because of housing news. A long @ 978.00 was good for a scratch. On the reversal, a short @ 972.50 was good for about 3 pts. From watching the action on news, I came to the conclusion that placing bracketed stop...

- $12 Trading different strategy from my old methods, 100 shares only. Violated a cardinal rule and ended up red instead of green! Still paper trading ES, still not fully comfortable with live trades.

Definition #1: Price opens at the lower left hand side of a chart and closes at the upper right hand side of a chart, or price opens at the upper left hand side of a chart and closes at the lower right hand side of a chart. Definition #2: Thursday 7/23

JO has no volume whatsoever. How do you trade that??? Wouldn't coffee futures make more sense? Or catch some nice swings with GMCR?

I have an unintentional mentor who's been teaching me about trend trading for some time now. As a mainly countertrend trader, I've yet to start trading this way, but it's becoming seriously enticing to me. What I've learned is you can't predict a trend day in advance. What you can do is look...

You nailed it. Every time bad news or a lowered target price hits and a stock gaps down, the gap tends to fill pretty quickly. Look at POT; every dip into the 80.00's and the buyers pile in as if the sale ends Friday. They're looking at the "blockbuster 2010" projections and any price below...

This isn't the making of another bull market, but when you look at the depth of the crash last year, you realize that any evidence of the economy stabilizing and leaving behind a "bottom" removes fear of re-entering the market. I have friends who lost a lot of money in the crash, cashed out...

What you don't understand is that one or two really bad trades like this can wipe you out. The greatest danger is you have 30 or 40 or 50 successful gap trades and you decide it's like taking candy from a baby, so all of a sudden the opportunity of a lifetime presents itself. July 30, 2008...

I select higher probability setups with very clear price levels where a trade would be invalidated. Overall this should produce a win:loss ratio higher than 50%, so I'm satisfied with a minimum profit target that's equal to my stop loss. If the trade continues to move in my favor that's great...

Really? You mean like the day trader who has almost a 3.00 a share gain on an intraday short position that's pulling back from 52-week highs and decides to hold for big profits like in the attached chart? Nice thing about intraday guesses is you can use stops to protect you.

This is absolutely correct! Here's how you get around it: Open a second account and go long everything you're short. Put in .10 stops on the long positions because as soon as you're long the market will turn around big time, stopping out your long positions for minimal losses and finally...

metoo, Thanks for the information. I'm familiar with TradeStation, but it took me 6 months of urging by many people to get me to open an IB account, so I doubt I'll be changing again soon. IB has worked flawlessly for me. I continue to use PowerEtradePro for my watch list of stock charts...

I really want to thank everyone for much good advice and many ideas. And yes, I felt like I was wearing a tin foil hat yesterday. When my best setup of the morning was not shortable, and when ES reached long/short triggers and pulling its head back in at the edges of channels on a Friday, I...

Cash, he's day trading. The way to hedge when day trading is to avoid averaging down (except with an advance plan to scale into a full size position with max loss determined in advance) and to use stops, IMHO. Neke, great comeback! Good to see the winners up, and the losers cut off.

Hmmm, never traded any of these symbols. By "moderation", would you trade, say 500 shares? :D