Scalping Gappers.

Discussion in 'Strategy Building' started by DuyLe, Feb 19, 2008.

  1. We "can" set stops to trigger based on price movement (and shares traded at that price)...I choose to not use the stops, simply because I don't use hard stops anyway. Stops tend to add to whipsaws, we call that move the "shakeout" - GE is notorious for shakeouts.

    I have an order sent to make only 6 cents for half my number of shares, so I can catch the "slingshot" that happens so often. The Specialist will gap down 50 cents, print up 8 or 10 cents immediately, and then go back down...I want to at least capture half.

    I then simply follow the market action, tape read, etc. to cover the other half. Sometimes even trading the opening stocks for a while.

    The strategy gets you "in" with an edge, and there are various ways of getting "out" - based on how you trade.

    Don
     
    #11     Mar 19, 2008