The Traderszone Network

Published in TZ Latest News 6 September, 2014 by The TZ Newswire Staff

Trading Gaps

Identifying a tradable gap can be quite profitable, but also frustrating at times.  Awful news hits the wires and a stock gaps lower.  The immediate question becomes “Should I sell at the open?”  Well, conventional wisdom may suggest that you sell and your emotions may suggest it as well, but just keep in mind that when supply is strong on the sell side, market makers are on the other side, gladly buying all the shares you want to unload.  And market makers rarely lose money.  So what does that tell you?  It should tell you that the highest probability after a gap lower is a recovery to “fi

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