Entry issues, please read!

Discussion in 'Trading' started by mEmmerrr, Jan 3, 2009.

  1. mEmmerrr

    mEmmerrr

    Alright,

    I have 2 issues with entry, and I feel it is consistently losing me money and wondered what your opinions on how to play this are;

    BTW to clarify, this is using spread betting.

    So, hypothetically, through my charting software I see a trade on stock X that I want to take at, say, selling it at 1000.

    Now, my first problem is that AFAIK the price of a stock is not neccesarily what a spread betting company will offer it at and I dont know whether to plan trades around the stock price or the website price?
    Im inclined to lean towards the stock price.


    Anyhow, that isnt that much of an issue because its usually pretty close.
    The thing that always throws me is morning gaps in the morning. I cant quite work out if this is a silly question, but I dont think it is.

    Lots and lots of the time the gap is opening past my entry point. How should I to deal with this?

    I could A) enter the trade at the market opening point. In the past this has lost me quite a bit of loot and my major problem with this is that it will invariably make my stop loss bigger than I want to, starting from a much lower price. B) Wait for it to retrace up to the level of my sell, and then sell? A reasonable amount of the time this will leave me shorting straight into the face of an uptrend. C) Abandon the trade. I don't really like this option, largely due to the frequency with which this situation arises.

    What would you do?