Okay, I understand that the sell order must be above the prior day's closing price in order to get a fill on a short sale. What about your buy order? Suppose the pre-market opening indications are very positive and your calculations tell you that your buy order should be above the prior day's close, do you place the order according to your calculatios, or do you use the prior day's close as your buy order price?
This may just be a question of how conservative or aggressive a trader you want to be and therefore somewhat discretionary. Does anybody have any "personal" rules they follow in this regard? What has been your experience with regard to profitable trades using either one of the above possibilities. This question is directed at anyone using this strategy.
