Limit Up

Discussion in 'Trading' started by Joe Ross, Mar 6, 2009.

  1. Is it true that selling a market when it is limit up is usually a great strategy?

    This brilliant strategy stems from the idea that selling a market at limit up, may result in the trader gaining two limit moves in his favor while theoretically not losing any money the day of entry.

    I think is that this is an absurd idea. I don t advise this high risk approach as a trading tactic.

    Keep in mind that most markets that remain limit up on the close, will open sharply higher the next day over 90% of the time. The limit-up sell is recommended only as a partial profit taking measure, not to initiate short positions which may be considered on the next higher

    If ever trapped into a limit up move situation try to buy deferred
    futures contracts or call options immediately and ask how many
    contracts there are to buy on the most active futures contract. If there are over 1000 contracts to buy, do not assume the most active futures contract will come off limit to trade the remainder of that day.
  2. Where do these absolutely worthless posts come from on a Friday afternoon???

    Just bizarre.