"Suppose it halts for news and reopens 30 points lower?"
Suppose it halts and reopens 30 points higher?
I have never had one halted yet, although I have seen some daytraders caught in a halted stock and were extremely upset showing high anxiety.
The plays I like are buy on news, Company xyz has cancer cure in works, now I know xyz is a little $3 dog with no earnings, yet many such stocks will run on that news, the key being getting the news first. I get the news, then I buy 1000 shares at market, this is no time to mess around with bids, 10 minutes later the news hits YHOO and other sources and more buying commences, in fact I will be selling the YHOO buyers my shares. Now, if I buy and xyz just sits there at $3 very long, I will sell, if it downticks 1/4 I'll sell. Since it is a $3 stock I can hardly lose 30 points.
In fact, playing safe stocks, msft, intc, cisco, I don't recall them ever being halted during the day. About the only way to take a big loss, LU last week, is to hold overnight, and many daytraders never hold overnight. In fact, in my daytrading account if I hold over night and sell the next day, those funds are not available for trading until the next day. |
