How to Trade Large Gap-Ups

EliteOptionsTrader
11-14 12:57

How to Trade Large Gap-Ups 📈

Whether you’re holding positions heading into a large gap up or not, there are key principles to follow to protect your account and maximize your gains. Here’s how I approached last week's big gap up after the election and some tips for navigating these types of moves 👇

1. Be Patient: Allow the first 15-30 minutes for the market to settle.. Initial profit-taking often occurs at the open. You’ll likely see key levels retested before a continuation OR see if a gap up gets sold. IF you didn't have any positions into the open.. this is when and where you'll find key opportunities to enter

2. Focus on Strength: Target names with relative strength, strong news catalysts, or momentum from the previous session. These are the names more likely to hold their gap and continue trending. Ex: $NVIDIA Corp(NVDA)$ making new ATHs with $.SPX(.SPX)$ making new ATH'S

3. Stick to Your Plan: Maintain discipline. Follow your trade plan and manage risk. Don’t over-extend yourself, and size your positions appropriately.. Don’t let these types of days turn into big red days from you breaking your rules.

4. Maximize Trend Days: On strong trend days, create a systematic approach to locking profits and staying in your winners. My rollup strategy helps lock in gains while maintaining exposure to the upside. Learn more about my strategy here..

Follow me to learn more about analysis!!

Investing Memes
Investing memes... all funny stuff in the stock market is welcome here!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment
2