any trade a strategy around gappers?

theapprentice said:
There don't seem to be many threads about equities trading on elitetrader. All basically futures it seems.

But in my experience, it seems that the percentage of successful traders seems to be higher with the stock trading guys that with those that try to trade futures.

Certainly it seems that going through the old PNL threads, everyone who made money traded stocks.

---------------

Nowadays, when I see people on youtube etc who appear to be making money, it seems as though all of them are trading the same stocks (gappers, medium to high stock price, high volume stocks etc) and basically using the same strategies (breakouts)

The videos of Meir Barak on youtube are a good example, although there are lots like him it seems.

I'm wondering if any people here trade like that? Are you profitable? How long for?

This style of trading interests me. I've been trading equities very small size for about 5 months, and i'm yet to get any sort of consistency/success. I can't seem to replicate their success. I seem to be doing something wrong (different to what the winners do), and so obviously won't be trading 'real size' any time soon.

Would be cool to hear from people who can maybe help me out and share their situation

PS - I will maybe post the results/charts of todays trading later on
More...


You can't hedge your positions correctly without paying a premium.

Although, if you've got access to IPO listings before the first sale you can make significant profits.
 
I started day trading 2 months ago (previous experience: long-term trading). Not successful at day trading at the moment, but minimal losses. Managed risk well on my losses. I took a break for 2 weeks for my vacation and also to reevaluate my strategy and go over all my executions. I realized that the most successful trades came from stocks that had gaps on opening, double the relative volume, and high volume. Those stocks would more likely have the patterns/breakouts that I was looking for.
 
comagnum said:
Do skill traders trade prior to or after the gap?

Since we are talking about trading gaps the assumption is a trader is looking for an entry when a gap appears, at least that's how I see it. At least that's how I see it.
More...
%%
Exactly.
But i look @ fundamentals for fun,2. I would like to buy - help Houston oil , OXY. And its a gap up in uptrend,[ SPY usually a good buy. Good dividend yield; good PE=2,959, but i seldom buy below 50 day moving average, so it's not a good buy for me, its good bye to OXY.:D:D:caution::caution:
Must be a related SPY buy......
 
Robby Luca said:
I realized that the most successful trades came from stocks that had gaps on opening, double the relative volume, and high volume. Those stocks would more likely have the patterns/breakouts that I was looking for.
More...

This is pretty much what i'm doing.
There appear to be people making money everyday using the same sort of setups as me, but there seems to be some sort of magic skill in taking the right trades and ignoring others. I seem to always get in the wrong ones, lol

I'm down a few hundred bucks today on stocks. LUCKILY I have my reliable ES market which I only ever LONG which has more than made up for the losses on the equities trading. (always goes up basically, lol)

I've already linked 2 channels who do what I wish I could do.

Here's a 3rd to show I have no bias, lol


However, as I suspected, I think ET is now just futures traders, really. Need to find a good equities forum to find like minded people trading a similar strategy
 
I got in touch with 2 traders that have been interviewed on Chat With Traders.

One of them spoke to me about looking for stocks that have gapped up in the previous day and had big moves and also in the morning, stocks that have gapped up during pre-market. He did mention that he's interested in why it gapped up.

The second trader told me he focuses on a relative volume above 1.5x, small-caps mostly.
 
lawrence-lugar said:
Follow/study Japanese traders CIS and BNF instead...they trade the broad market index only daily, o_O
Replicate their strategy and general way of thinking,

These guys make everyone else seem like peanut salesmen,
There's not much info on them online though,

Daily revolutions are much more rewarding then swing trading,
Higher revolutions are much more intense...it's like a Formula 1 race car and a street Porsche 911...completely different beasts,
More...

Where can I follow CIS?
 
theapprentice said:
This is pretty much what i'm doing.
There appear to be people making money everyday using the same sort of setups as me, but there seems to be some sort of magic skill in taking the right trades and ignoring others. I seem to always get in the wrong ones, lol

I'm down a few hundred bucks today on stocks. LUCKILY I have my reliable ES market which I only ever LONG which has more than made up for the losses on the equities trading. (always goes up basically, lol)

I've already linked 2 channels who do what I wish I could do.

Here's a 3rd to show I have no bias, lol


However, as I suspected, I think ET is now just futures traders, really. Need to find a good equities forum to find like minded people trading a similar strategy
More...

I've been following Meir, Andrew Aziz, Jared Wesley and a few others who trade gaps now for a while. I am in the same boat as you. Studying and sim trading then live trading for about a year now, I still have not found the consistency that these guys pull off day to day. One small red day out of five for them is normal with winnings days $1000+. The strategies they use are all similar - big gaps and ORB, pullbacks (reversals Meir calls them, ABC by Aziz and a Buy/Sell setup for Jared) and your typical breakout/breakdowns.

I too take a lot of the entries that they do but I also try to do my own homework and take trades that fit the strategy but these guys seem to have a sixth sense as to which setups will work most of the time and skip the ones I take (and lose on).

It's funny because I'll email them from time to time with charts and they'll say "oh yeah, great entry but it just didnt' work out....." on the trades I do take but they didn't at the time.

Maybe I just need more screen time or perhaps I'm missing something (money management issues?).
 
You must log in or register to reply here.
Back
Top