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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: Richard Estes who wrote (2349)	1/12/1998 10:11:00 AM
From: TFF	Respond to of 12617

Richard:>>you use isolated bad news as if it is present all the time, factually it is not. I agree that gaps do not occur all the time. In my experience they have occurred often enough to make an impact and that is what I am trying to avoid. I guess we'll need a volunteer to dig through the financial analyst journal archives for a documented study of the GAP EFFECT:) P.S. I'll send you the first copy of my book THE GAP EFFECT - MYTH OR REALITY?

To: Richard Estes who wrote (2349)	1/13/1998 11:30:00 AM
From: dunlurkin	Read Replies (1) \| Respond to of 12617

If you are a fraction scalper, you should never take a position home. If you are a day trader, which is to say you try to capture the main move of the day, targeting a point or two or three on a given trade, you might consider taking a position home overnight but only if it is in the direction of the main trend, and you have a signifigant cushion on the trade. The question you have to answer is "are you willing to give up the profits in hand, plus maybe the amount you would risk on another trade, so see if the market opens in your direction?" Look at the daily charts of qntm,efii,danky,oxhp- all were in fairly to firmly entrenched downtrends before they gapped down. The only right overnight position would have been a short one.