Sunday, July 27, 2008

Trade Review - VISN - It IS Ok to Buy Gaps on Earnings?

Hey, traders. This is a look at VISN from Friday, why I bought it, and why I still would do so again. Someone left a comment that buying gaps was not a very wise move as a trader. My response to that would be it depends on the gap. If you have a breakaway gap, especially out of a nice chart pattern, caused by a true catalyst in the form of earnings, then I will look to buy each and every time. They may not all work, and I may get stopped out of some too early like I did with VISN, but in terms of finding stocks that are set to make big moves, there are few other strategies that I find more effective. It pays to pay attention to the small cap earnings reports over the next month or so. Perhaps you will be able to find the next big earnings winner.

I think the sound is better now - not perfect, but I will learn as I go with these.

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