Terry - I've got to disagree with you on holding trades overnight. While this definately opens you up to additional risk, it can also be very lucrative if (and this is a big if) you are very disciplined in selecting stocks. For example, lately there have been excellent overnight gaps on stocks that have either warned or missed earnings and gotten hammered (JDAS, SAVLY, PKS, AZPN etc...). Usually there's not a lot of downside risk in these, as the earnings news is already out, most people expect downgrades (if they haven't already happened), and the stock is likely off at least 20% or more. I routinely take these home and have been very happy with the results. In other types of markets, I also have had good luck with gaps on big gainers, although these definately hold more risk.
Anyway, not saying that this is for everyone, but I've been selectively employing this strategy for the past six months (and tracking such trades for significantly longer) and it has certainly worked well for me.
Good trading
Dave |
