Gap Plays

Discussion in 'Journals' started by gapster, May 31, 2005.

  1. gapster

    gapster

    I'm more pragmatic about it --I won't take more than a $200 hit on my account. For RIMM @$75/share, I mentally raised it to $400 - $500 and I almost got stopped out today too! So yea, I watch the "unrealize" Profit/Loss window of my real-time Portfolio stats. And I do try to get out when I'm +$1000 (my profit target - but i'm flexible about it) in that window. I find it easy to click the trade button when I see the portfolio's value moving whichever way.

    But, I do keep an eye on the PRICE of the stock as there are natural levels of resistance/support e.g. whole numbers (mainly) and halves (.50's) and to a lesser extent, quarters (.25's).

    So while I got the trade underway, I keep shifting my eyes between the Price of the stock and my portfolio's unrealized value. Back and forth, back and forth --until one tells me to hit the buy/sell button to close out my position.

    I also found that there are natural time stops that you could use too --perhaps not to actually exit but to at the minimum tighten your stops somewhat or even to add to your position. These time stops happen often times with spooky regularity...


    <-gapster->
     
    #61     Jun 10, 2005
  2. gapster

    gapster

    Pre-Market Gap Stock Watchlist for June 10, 2005 FRIDAY:

    Gap Downs:

    IFIN



    Shortable via Alliance. Open up Time and Sales and observe Price movement @ Market Open.


    <-gapster->
     
    #62     Jun 10, 2005
  3. gapster

    gapster

    Trading Results June 10, 2005 FRIDAY:

    IFIN has a nice drop off the open but I didn't play it...

    No trade this morning. Back to sleep!



    <-gapster->
     
    #63     Jun 10, 2005
  4. VictorS

    VictorS


    LOL, you make it sound so simple.:D :D :D :D
     
    #64     Jun 10, 2005
  5. zenith

    zenith

    Does anybody know where I can find archive of stocks gapping up or down for backtesting? Anybody knows how to backtest these strategies?
     
    #65     Jun 10, 2005
  6. gapster

    gapster

    Pre-Market Gap Stock Watchlist for June 13, 2005 MONDAY:

    Gap Downs:

    CNCT
    PNRA
    BLUD




    Shortable via Alliance. Open up Time and Sales and observe Price movement @ Market Open.


    <-gapster->
     
    #66     Jun 13, 2005
  7. gapster

    gapster

    Trading Results June 13, 2005 MONDAY:

    Trade #1:
    09:30:39 SHORT CNCT 2000 shares @ $15.67 (average)
    09:32:58 Buy to Cover CNCT 2000 shares @ $15.55

    Trade #2:
    09:34:55 LONG CNCT 2000 shares @ $15.875 (average)
    09:38:17 Sell CNCT 1000 shares @ $16.00
    09:41:26 Sell CNCT 1000 shares @ $16.00



    Profit/Loss
    SHORT Trade #1: +$240
    LONG Trade #2: +$250


    Total Profit: +$502.10 (I know is should be $490 but $502.10 is what's appearing on my portfolio window as my gain for today. Commissions/fees not taken into account). And yes, I was scalping for 10 to 15 cents which accounts for my larger than 1000 share lot size.

    P.S. Please note: Not all my plays are winners. Impossible! Secret is to control your losses which actually means to contol your emotions.

    <-gapster->
     
    #67     Jun 13, 2005
  8. gapster

    gapster

    BLUD should have been the stock I played this morning. I had it up on my screen too! BLUD was a total SCREAMER off the Morning OPEN as it went -$3 in FIFTEEN MINUTES.

    The thing is, I can only watch one stock at a time and I was concentrating on CNCT this morning.

    I do have to improve on my ability to watch multiple times and sales windows and act appropriately.

    Much of what I am doing is pretty discretionary. I don't want to mess with things too much, but I have in my mind a different way of playing the Open on these Gap Down stocks.

    I'm going to experiment with it a bit and won't be posting anything until I see how things pan out, either way.

    Till then, good luck to everyone on your Gap Down plays!

    <-gapster->
     
    #68     Jun 13, 2005
  9. gapster

    gapster


    Add "backtesting" to one of the Myths I simply don't believe in. Right next to "Funny Mentals" and "T & A's".

    The only "backtesting" I actually believe in is one's own Trading Account Blotter! So true, huh?

    Scalping the Open of Gap Down Stocks is not a strategy! It is essentially a cash management exit system.

    My going LONG or SHORT is based on what/how I see in the Tape i.e. Price / Volume / Velocity. This part is hard to put in words and is therefore as of this point, purely discretionary trading.


    <-gapster->
     
    #69     Jun 13, 2005
  10. what happened? any other trades?
     
    #70     Jun 16, 2005