Gary,
I trade in Ken Wolff's mIRC chatroom. He has two ways of playing trades like that but, usually, when stocks gap up he watches it climb a bit at the open, then may short it for a pullback, or wait for the first pullback after the open, then go long. He plays oscillations mostly during first hour or two. If you read the early market signals for direction and select an appropriate stock to use as an indicator, use tight stops, you can usually do quite well on these type play.
Key thing, when the stock gaps up a lot, you don't buy at the open, you wait for selling (profit-taking) to occur causing a small pullback, then you buy for the next run-up which is more predictable and safe.
Bill
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