You really can’t limit your risk when holding overnight unless you come up with some kind of hedge. That’s why I avoided earnings season when I was swing trading.

But even with day trading you can get caught. A stock can have some huge news come out mid-session that could wreak havoc on your position. That’s rare but it happens. It’s a reason to be real careful about trading stocks that are moving on nothing but rumors.

This question is not related to this post but; being in a swing trade, how do you limit your risk to daily gaps. I mean, a stock can gap down 50% in the morning. So, naturally, in day trading, your stop would trigger and you would be out with some damage. However, in a swing trade, after hours news can cause a loss of thousand of dollars. Do you reduce size of the position as opposed to day trading or hedge or have a minimal number of trades going at the same time to reduce risk, or avoid earning days? I hope I am being clear. Thanks. Always enjoy your blogs.

Could you note exactly what section on Briefing you find the Watchlist? Specifically the gap down/gap up list.

Thanks!