My favorite ways to improve your trading today

Handling Gap Entries

Many times an opening gap can be the high (or near high) for the day. Stocks often quickly reverse from these situations. Therefore, blindly entering on an opening gap could be a bad idea (reminds me of the "Bad Idea" jeans). Below is a bit of a "no brainer" situation. The stock gaps opens and quickly reverses. Even though the entry triggers, this position should be avoided. A "second entry" could then be placed above the opening range (i.e. intra-day high).