Rule #1
I’ve had this rule taped to my monitor for the past 3 years: On gap-up openings, buy above the 10:00 high. That rule has saved be a lot of money. When I started trading, I’d get all excited when I saw the futures flying pre-market. I’d rush in to buy at the open, thinking I’d get in before the market ran away from me. Almost invariably I’d buy near the high of the day. Somewhere in my reading I came across that 10:00 rule (for some it’s 10:30), and I’ve followed it ever since. (The opposite of this rule holds true for downside gaps.) The market …
tagged: Gaps, Gap_Trading, Market-Makers, Opening_Range_Breakouts, Rule_#1, Specialists and Trading_Rules
