![]() Also, ensure you are purchasing near strong support levels, which can also help minimize any potential loss. Lows so you are less likely required to average down. To ensure you get the best price, to begin with, try finding stocks already beaten up near their lows, so you are less likely required to average down. Also, you have the ability if you decide to average down and reduce your break-even price. In this scenario, you can either wait until you break even or sell for a slight profit. What Happens If I Buy A Gap Fill And The Stock Price Falls Further? Remember, you should continue doing your research and making independent decisions on what feels suitable for your own goals and investment circumstances. The magic comes when you repeat this process to compound your gains over a longer time frame.īy understanding Gap Fill Strategy, you will be more aware of what patterns to look for, and you will have a better chance of making a steady profit. Instead, it would be best to aim for smaller gains, usually between 10-40 percent profits. The key to success with Gap Fills is not looking for home runs of 100-200 percent gainers on each trade. However, even if you were able to realize a 10-30% gain within this Gap Fill Area should be considered a good and profitable trade. You may not capture the exact buy bottom wick of $0.0019 or top wick to sell at $0.0029 to achieve a perfect 52% gain. Using this strategy, some traders often find it much easier to make money on over-the-counter stocks. Notice after a GAP UP, the stock EEGI price comes back to “Fill The Gap.” This is called the “Gap Fill Area.” Therefore you should be cautious, do your research, and set your expectations accordingly if the trade does not work as expected. Searching for Gaps should always be done on the daily chart and generally not on any other lower time frames. The strategy is called “Gap Fills.” You can make money by picking stocks that “Fill Gaps” and then selling them for a profit.Īll Gap Fills are typically found using the 1-Day Daily time-frame chart. ![]() However, this one strategy can help you make money when investing in Over-The-Counter (OTC) stocks. To make investing even more challenging, the transactions and fees may offset any returns for someone with a small dollar amount in their portfolio. It isn’t easy to make money with any strategy when investing in the stock market because of various factors affecting a stock’s price at any given moment in time. It stops you from buying stocks that have already run up at their top before they crash and your holding bagsĥ2% Potential Gap Gain = $0.0029 - $0.0019 = $0.001.This strategy rewards you for getting in early and being patient,.It is NOT intended to find 100-200 percent gains per trade Recognize this strategy is best for finding repeatable 10-40 percent gains. ![]() Understand how you can apply this towards your trading for success.You will learn what a Gap Fill trade is and how it works with an example.I will provide you with a trading strategy other OTC traders commonly use.You will see an example below to understand Gap Fill trades and what to search for when you trade Over-The-Counter (OTC) stocks. The Gap Fill strategy is a technique traders use to buy stocks at a low price and sell them at a higher price.Ī trader could purchase stock after waiting for it to drop in price significantly and then wait to sell it for a profit as the price increases to fill the Gap area. Gaps also form as market sentiment changes overnight, like reaching new highs or lows. Thank you! - Please don't forget to signup to our free email newsletter.įundamental or technical factors cause the Gap Fill Strategy, and they tend to return to normal as underlying conditions normalize. Your support helps us grow our Website, which allows us to continue providing you useful information. This post may also contain affiliate links and I may earn a small commission when you click on the links at no additional cost. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether to make investment decisions or otherwise. It is very important to do your own analysis before making any investment based on your personal circumstances. ![]() Our content is intended to be used and must be used for informational purposes only. Disclaimer: Before using this site, please make sure that you note the following important information.
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