Mohab Ahmed Nab
عضو نشط
Sorry again for writing in English, but pls take time to translate this.
The list have been discussing two important issue, and I want to add my little experience to these two subjects:
1- how to avoid Gap Down
There is no absolute rule to avoid gap down, and no one can predict when the gap will take place.
But to avoid gap down there are some solutions:
one of these solutions is to trade holders rather than individual stocks.
as Holders have less probability to gap down as they are portfolio of stocks in the same sector, even if one company of the holder's component gapped down,
this is not a hard rule as i mentioned before, but this will lower the probability of gapping down.
and to have such safety from being involved in gap down, the rate of return will be lower than individual stock.
this is a give or take game
you give or sacrify high ruterns onver short term, and you take the lower probability of dpwn gap.
the second issue I want to discuss is Stop loss
which will be in another post
The list have been discussing two important issue, and I want to add my little experience to these two subjects:
1- how to avoid Gap Down
There is no absolute rule to avoid gap down, and no one can predict when the gap will take place.
But to avoid gap down there are some solutions:
one of these solutions is to trade holders rather than individual stocks.
as Holders have less probability to gap down as they are portfolio of stocks in the same sector, even if one company of the holder's component gapped down,
this is not a hard rule as i mentioned before, but this will lower the probability of gapping down.
and to have such safety from being involved in gap down, the rate of return will be lower than individual stock.
this is a give or take game
you give or sacrify high ruterns onver short term, and you take the lower probability of dpwn gap.
the second issue I want to discuss is Stop loss
which will be in another post
