HOW A GAP TRADE PLATFORM WORKS
Gap Trader is a tool for identifying gaps in your stocks and providing you intelligence to inform and improve your trading. First; input your stock symbol in charts and choose your percent gap. It is recommended that you set your gap at 3 percent and stock chart at 6 months. Gap Trader will identify up gaps and down gaps. Adjust your percent gap until gaps become present. If your stock has a gap up, it is a candidate for a sell signal. If your stock has a gap down, it is a candidate for a buy signal. After the gap is closed you decide either to sell or stay. It is suggested that you wait a few days to get the most out of your trade. Whether a stock gaps up or down doesn’t mean a stock will continue up or down, so be patient. Study your stocks (I.e., market news, quarterly earnings, etc.) so that you understand the companies that interest you and to be confident that you are investing in what makes sense, given your circumstance. Experiment by changing the gap percentage between 2 and 5 percent. It is suggested you ladder your funds into 4 equal positions. Do not invest 100 percent until there are four gaps that you have made trades on. Gap Trader is a tool to make you a better day trader. Keep practicing until you feel comfortable with your ability to trade. You can use tools from website like premarket scanner, premarket gainers, premarket stock, and premarket news to see how the stock market is going to open.
DO NOT USE FUNDS EAR MARKED FOR RETIREMENT
ALSO FUNDS YOU CAN NOT AFFORD TO LOSE.
What causes gaps up or down
- Market news
- Quarterly earnings
- Stock consolidation