How to buy a stock on a gap up

Apr 5, 2021 Stocks trading

1) Stock must break out of a sound base and have great fundamentals
2) Volume must be very high, e.g. >300% of the 50d average
3) Set a SL at the low of the day.
4) Scale into the trade and add at close or next day.
5) Risk must be acceptable.

A lot of traders seem to think the more advanced the strategy, the more profitable that trade will be.

In reality, I love to trades simple straight forward patterns. This eliminates emotion and allows you to trade with confidence!

Once you understand how the market fluctuates in & out of certain sectors during the yr it makes it much easier to position yourself ahead of time and be much more patient. Trying to day trade can work but is much more of a headache to teach imo

Think about how averages are calculated. And what happens if you hold a stock over the weekend? How many hours is that? What will that do to an average mostly made up of very short durations? Those average hold times are worthless for any analysis in that form.

No such thing as ‘how much longer do we have to wait’ — you’re either invested in it as a ‘swing trader or going long’ or you trade it — if you’re trading it, do yourself a favor and go with the technicals and if it ain’t working for you then it’s time to find new stock pick:)

It means most of the traders just think this way: If stock “X” comes at “Y” price, they’ll simply buy thinking that it’ll rise again from here. This is one part but they should focus more on how much they are ready to lose (based on SL) if trade doesn’t works out!

By admin

13 thoughts on “How to buy a stock on a gap up”
  1. How totally and utterly impossible will it be for me to trade/sell off my Series S for a Series X, once stock is actually available? Realizing the benefits on the Series X and my new TV aren’t being reached with the Series S. Also, I know have a reason for an HDR/4K disc player.

  2. Imagine buying a stock at $8 and saying i’ll sell it all at $50 but then watched it climb to $49.90 only to fall back down to $6 without ever making a profit….how stupid would you feel making a perfect trade and etting greedy for $0.10 per contract or share?

    Pretty damn stupid

  3. That’s the difference bwtn investing and trade. Crytocurrency and NTFs is like any fad of any generation. Also i think it’s an easier way to launder money. The valuation is partly hype and how less of it is being offered on the market like any other unrestricted stock.

  4. This makes work for legit business so much harder to help people. I’m with a company called Stock Market College and they actually teaches you how to trade the markets. You invest in education that can help you for the rest of your life plus you can get an NQF level certificate!

  5. Peter já leu esse : Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market. Nem tudo se aplica a nosso mercado mas tem muito insight bom !

  6. The job market will grow out of control our country will set up the trade abilities from old days and the countries stock market will reach new heights as early as mid year 2022 or even sooner according to how big we go and how much we invest in our homelands abilities to put

  7. Disagree. I want to hear about her work life, not her personal life. If youre gonna talk personal life, tell me how many hours you work and how many hours your EA works. And share what she has time to do in her personal life. Or else stock just to work duties.

  8. 1. Quality is not the best policy. It is the only one.,2. No one has ever become poor by giving.,3. Adaptability is your true strength, never the blind persistence.,4,5,6,7

    1. My dad diddnt know how to buy a stock or what a limit order and market order is but he knows how to fix old cars and uses automotive terminology in a way that I wish I could understand. People use the word uneducated too much.

  9. And if u want to know when and how to buy? Learn what currencies are doing: DXY, USDJPY, WTI Crude. These things matter. Don’t just blindly buy a stock and risk capital for the short term without knowing this. If you don’t? Learn it. It takes time, a lot of damn time…to the

  10. Even if you knew nothing about trading just what a stock symbol was and how to buy it.
    THIS market is so HOT right now.
    All you needed to do was watch the CNBC ticker after hours.
    See $ANCN flashing and going higher .
    Buy it and sell it and make a ton of $. That’s it. Hahahe

  11. You don’t need no one to teach you how to buy some gold or a stock you just buy it hold it and forget about it by living your life and not over leveraging $ you NEED immediately

  12. I want to do this so bad but I don’t even know how to buy a stock???? Is there an app for this??
    Loudly crying face

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