3 ways stocks and indices can move

stock or indices

can move in the following three ways only

1. gap opening (overnight movement) only

2. intraday movement only

3. gap opening + intraday movement

the second type can be managed by the ways mentioned in my post

"high probability entry/exit points"

the first type is slightly difficult to catch except with btst/stbt

positions (not easy to predict - trying to crack the code and will

share with you)

another way to catch the first type of movement is thru swing trading

the third type of movement can be further divided into 4 sub-types

a) small gap opening, big intraday movement

b) small gap opening, small intraday movement

c) big gap openinig, big intraday movement

d) big gap opening, small intraday movement

can't do much about b) and d)

c) is rare but profitable

a) can be most profitable

how

with the ways mentioned in

"high probability entry/exit points"

remember 80% of the gain happens from 20% of the opportunities

meaning thereby,

that we should not trade like a salaried trader

but like a businessman trader

and trade only opportunity.

we have no boss to answer except

ourselves

and wife!

happy trading!