You’re As Good As Your Last Trade…
- Performance Explained....
- Why Morning Gap Performance Only?
- Are These Numbers For Real?
- Why Does This Matter To Me?
The performance numbers require some explanation. The columns are self explanatory for the most part. Long / Short is whether the trade was taken by buying the stock or selling it short. Max P/L is the maximum profit or loss a trader could have derived from the trade.
The total number of trades are only those that hit their specified target entry price. Alerts that are sent to subscribers each day can have several gap trade opportunities, however not all will hit their entry price.
Traders are not expected to obtain maximum gain on each trade. (other then once in a while) The published numbers are meant to show that there are home run trades available as well as base hits or scalp trades. Focus on the wining percentage rather than the cumulative wins.
The morning gap trading strategy is mostly binary process. You’re taught to buy a certain price level, look for a specific target and use a specific stop loss as discussed throughout the course material. (There are exceptions to this rule discussed in the course, but generally speaking…)
Gap Fill trades require traders to make more decisions based on how a stock might be approaching a price level. This makes tracking performance too subjective.
Great question. The performance numbers are only from the stocks included in the email that gets sent to subscribers who receive my gap trades each morning at about 9:00 AM EST – Before the market opens. The price levels you see here were included in the aforementioned email. In most cases, we either have recorded the trade live or made a video explaining trade. These are on the YouTube channel.
That depends on what you want to do. You can learn a very unique and specific gap trading strategy that teaches you how to find the highest probability location where a stock is likely to have a price reaction in the other direction.
If this seems like something of value, then it matters because if you have the desire and discipline, you can learn how to make real money in the market.