Here's a great trading quote you may not have heard:
"It is better to trade two complementary strategies that make less, than one strategy that makes more"
Yes, it is almost always true. Traders can make more profits (over the long term) by trading two conservative, complementary strategies that have lower, combined profit potential than trading one aggressive strategy that has a higher profit potential. Continue reading "Trade Gold? Two Compelling Reasons To Consider It"
By: Scott Andrews of Master The Gap
Trading is full of counter-intuitive ironies. Some of my favorites include:
"the best time to buy is when everyone else is selling"
"you can not make money, without risking money"
"to make more, you need to trade less"
"you CAN go broke taking profits (too early)"
And here's a lesser known one: Continue reading "Got Oil? Two Compelling Reasons To Consider It"
By: Scott Andrews of Master the Gap
I am a gap trader. Specifically, I 'fade' the opening gap (i.e. go short when the gap is up or long when the gap is down). My first research breakthrough many years ago was in recognizing that gap selection was the “door” to making profits and the “key” to that door was to focus on the location of the opening price.
Using the prior day's direction (up or down) and the open, high, low, and closing prices, I created ten “zones” and each provides tremendous insight into the probability of a gap filling or not. Click here to view my Gap Zone Map with historical odds for the S&P 500. My selection strategy has evolved over the years to include market conditions, patterns and seasonality, but zones remain the foundation of my gap fade selection criteria.
So why do opening zones work? They inherently incorporate : Continue reading "Know the Zone & Improve Your Gap Trading"