I bought $HGTM at the open for the morning spike and it failed so I cut losses quickly and lost a couple hundred on a $3300 position. My question is the stock went up after hours and pre market this morning was pretty much fading until the open. When Tim buys a fading stock off pre market highs he says he is "dip buying" which sounds great. On the other hand when Tim sees another stock with the same price action he'll say "its fading pre market no play" My questions is wouldnt that be dip buying also? Just a question I have. I am sure its certain catalyst along with price action pre market to some degree. Any thoughts?
Posted Mar 23, 17 1:18 PMbyTickerJesus
Tickers
$HGTM
Yeah I get what you mean. But recently this play has surfaces so I guess people are adapting.
Gap and Go is a pretty risky strategy all around. It could literally go either way which is why you see conflicting positions from the pro's. I actually missed HGTM morning spike, but recognized the far more stable cup and handle setup that formed after the initial fade and bought as soon as it broke out above the cup. Made a tidy $850 profit off of 2 separate plays on this stock today. I've been burned too many times on Gap and Go to feel comfortable continuing to try it.
Yeah the cup and handle or u shape bo would of been the play when it broke the open price. Buy in and sell into that spike.
It is very unclear sometimes I agree. If price action seems like a gray area, look at multiple timeframes, its history of holding up, the market cap compared to how much f a range it has moved in to look for clues of overextension, or rapid panic without news. These other indicators help you make a decision. I'm not paid to say this but...watch his guides, trader checklist and penny stocking series.
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