Huge gap ups creates Huge losses for traders
- Thread starter NY_HOOD
- Start date
It's not. People are clinging onto false hope because the world looks hopeless. This is a bull trap.
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That can work well, but depends on the market.[Most likely jim Rogers has been buying tech all month-but that is just a GUESS]
For example, SDOW is still above 200dma + has been for a good while. So on a good trend, don't be in a hurray to sell on SDOW gapping up when it has been in the pattern of gapping up/gapping up...………………………………………………………………………………………………………...
I see the media is NOW hyping the DOW.
Good point, staying over 200SMA = hold/add.
Best chart pattern to buy is small 2day high gap continuations, big gaps (>10%) can go either way
Just trade what you know.... every time market goes up bull people pound there chest, every time it goes down bears pound there chest. I'd rather it stabilize and go up just for general stability, but at the end of the day for trading purposes I don't particularly care. I trade whats there. You have zero flexibility if you're only going to trade one direction no matter what.
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Exactly. Big gaps can go either way.And when SPY+ UPRO/related has gapped down as much as it has this year-- most likely will gap down some more.
On SDOW this year, most gaps have been up, so most gaps , say the next 21+/days are most likely up. NOT a prediction.
[AS far as old folks in Italy, Italian socialized med, heavy smokers=Big Virus/RISK/ RISK!!!!! BUT an old timer like Jack LaLane ,he tended to be real healthy-even when old. And he lived almost 100 years=good trend. LOL + true ]
It seems to me that there are many ways to determine the market entry point, someone is working on rollbacks, for someone the main advantage is to use a trend approach, etc. The main thing here is to find something that will be understandable and accessible to you, what difference does it make how others treat it? In addition, our impressions and attitude to trading change almost constantly, which means that we can test different approaches to use different strategies for different assets, depending on their performance... So there can't be right and wrong, just everyone takes in the work exactly what suits him most of all, what is amazing here...?
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IT could easy close up or down day/weeks.
I did some cash ETFs/longs , but those pay a good dividend.
SDOW is still above 200dma...……………………………………………………………………………………………..
In fact, here you can look at the situation from different angles, each specific situation has its own details and nuances. First of all, I would note the fact that a hep can really create a false impression of a fast and rapid movement, and it often leads to even greater losses. It's really hard to explain, but over time you just come to the realization that something is going wrong and you just miss such positions. Strategy is always good, but no matter how exciting it sounds now, you still periodically retreat from it, regardless of your dynamics, etc. And this is absolutely normal. Although, many traders seem to intuitively wait in such situations not to get into difficulties...