Tag Archives: gap trading for stocks and options traders
Today, 10th September, 2015 Nifty has created a huge gap in the opening trading. Market started almost 84 points down in Nifty index. So its once again a gap trading day. These are the days when intraday traders do the worst gap trading mistakes.
Some gap trading mistakes:
- You buy too early in a down gap.
- You short sell too early in a upside gap.
- You can’t decide target due to the sudden range expansion.
- You can’t decide stop loss due to the sudden range expansion.
- You then see that the market goes exactly against you.
Another problem in opening gaps are the overnight traders become confused if the market goes dead against of them. They either book loss and then finds the market once again comes back to their initial position.