I've noticed in my miniscule research - from watching, not backtesting, that trading a stock after it had been halted is very profitable.
What do you guys think?
What do you guys think?
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Trading After A Halt
- Thread starter AnonymousTrader
- Start date
During a halt - usually substantial news are announced. It is clear to see whether they are good or bad. In the worst case, the stock after a halt opens gap up or down. Thats a sign of the impact.
The most recent halt I traded was in CEPH when FDA approved some stage of its research. It opened a point higher - I longed and got out a point profit within 2 minutes. That was my latest trade.
The most recent halt I traded was in CEPH when FDA approved some stage of its research. It opened a point higher - I longed and got out a point profit within 2 minutes. That was my latest trade.
yes, but the price was $1 lower after 30 minutes. I did trade it as well. The question remains: how do you determine your direction ? Buying goof news and shorting bad news as your only criteria will not lead to long term success. Don't have the answer myself.Quote from AnonymousTrader:
During a halt - usually substantial news are announced. It is clear to see whether they are good or bad. In the worst case, the stock after a halt opens gap up or down. Thats a sign of the impact.
The most recent halt I traded was in CEPH when FDA approved some stage of its research. It opened a point higher - I longed and got out a point profit within 2 minutes. That was my latest trade.
Quote from chs245:
yes, but the price was $1 lower after 30 minutes. I did trade it as well. The question remains: how do you determine your direction ? Buying goof news and shorting bad news as your only criteria will not lead to long term success. Don't have the answer myself.
Thats exactly my question! After I got out - it went up another 20 -30 cents and then PLUNGE back down.
But the idea is - whether the initial reaction is good enough pattern to trade?
Quote from hoodooman:
Thanks for the reply. I appreciate that.
I was looking around on the web but couldn't find anything specific to that. I suspect it could work if you could backfill the chart like you can do on Quote Tracker.
regards
I think it would be difficult to screen these gaps? Never used quote tracker.
I am thinking whether or not to put time aside for the Halt research... I think that something may be there!