Day Trade Newsletter Question - Capturing the Gaps

Question:

David-

Why not determine the setups prior to the close and take the trade at the close

instead of at the open the following day. You would capture all of those big gap moves,

often times the majority of the move.


Answer:

Great question. I do it as a form of risk management. I'm not looking to hit home runs and thus strike out to. I'm just trying to consistently hit singles and garner large returns over cumulative trades.

I have found that without the trend confirmation, I get large swings in my results which usually cancel each other out. Remember the trend is your friend.

But I see your point and it sure is tempting especially with the money left on the table yesterday.