That would be shorting into a massive gap up open like we had this am. Basic Trading 101. You know a massive gap open is going to give back a lot of that at some point. I am not saying the sort of reversal we are currently seeing happens routinely. What I am saying is that massive gaps generally retrench. Massive gap up open=Go Short Massive gap down=Go Long In a nimble fashion of course....not just blindly. Happy Trades!
easy to say after the fact..if you post it @9:45-that would be another story. yes, i did short whole thing shortly after open and keep covering all day long.
It is common to NOT catch all of a move. That is the regular occurrence for all traders. Don't be mad. Move on. I learned long ago to never play the shoulda/woulda game....especially when it comes to capturing every last penny of a move. I never catch every last penny... Shorting a massive gap up open is Trading 101. You take $$$ at the coming retrenchment. No one saw this big of a reversal coming.
I actually posted on this topic weeks ago about routinely making these trades on gap opens. And suggesting that individuals do the same. This type of market and the volatility we have been seeing lends itself to this trade strategy. It is basic trading 101 that Everyone on here should know and should have done. That was the point I guess you missed that. Happy Trades!
Damnit posted this at 12:37 and then deleted it. I was going to reply to him by suggesting he read my 12:27 post. I guess that's why he ended up deleting the below post. damnit Registered: Sep 2007 Posts: 511 New Post 12-12-07 12:37 PM Quote from 1flyfisher: "I actually posted weeks ago about routinely making these trades on gap opens. It is basic trading 101 that Everyone on here should know and should have done. That was the point I guess you missed that. Happy Trades! " damnit's response, "I am sure you caught the entire move and made superrr gains."
1flyfisher you are missing the point Bob111 made. Anyone can post about some trading strategy and cherry pick the results after, but very few - if any - will back it up with a LIVE, REAL TIME trade on EliteTrader with the very important EliteTrader timestamp for easy verification. If the market continued up today you would not have started this thread. You had plenty of time in the morning to post an opening trade, takes less than 30 seconds. Perhaps next time you could post your trade in real time.
I did. I told you weeks ago that Everytime we have a gap open, whether it is to the upside or down side I will be trading it accordingly. Get it? Happy Trades!
Yeah I have seen this written about in many books as well. Not a new concept . What makes it successful is where you set your stops on days you are wrong and it is a gap and run or gap and never close.