RL Trade on Jun 7, 2016 09:36 from robw_BOWS: Tradervue User Stock Trades.

Sim Day 15

For the past couple of weeks, I've been studying how to trade gaps (I also took a course on gap trading), so I've decided to solely focus on gap trading for the meantime. My plan now consists of scanning for gaps during the pre-market, creating my watchlist, and forming my plan for the trade prior to the market opening.

$RL gapped down pre-market into an area of major support. My plan was to fade the gap after confirmation of the failed breakdown. It did exactly what I wanted it to do, so I faded the gap after confirmation of the failed breakdown, and I set my target for the 20sma. I was out of the trade by 10:45am and done for the day (a $2.93 move from my initial entry). It worked out perfectly because I had conference calls this morning.

Overall, I was happy with my trade, and I formed my plan based on what I had learned in the gap trading course I recently took. My entry could have been better, and I'm still practicing to get better on the entry. Also, I've been getting into the habit of setting my stop-loss a bit loose with a mental stop in between, so I don't get stopped out so easily.