Review: How to gap trade...Step by step guide!
Rating: 5 out of 5
Date: 04 10, 2014
Gap trading involves high risk, so reading this book is definitely helpful to getting tips on the strategy of how to do it properly.This book sets out the three factors underlying why gaps occur and the four different types of gaps (being continuation gaps; breakaway gaps; exhaustion gaps; and common gaps).  It's important to know what the different types are (and which gaps get filled and why) because that helps you understand gap trading strategy. Namely, it helps you decide HOW to trade the different types of gaps.Michael Young also reviews how to MINIMIZE RISK when gap trading.  This includes how to watch chart patterns, how to use stop orders to limit losses, how to use volume as an indicator, whether one should wait after a gap has formed, being aware of company fundamentals, technical trading level, outside influences that affect stock prices and testing out gap trading).There are two bonuses in this book (which is, again, why I gave it 5-stars.  You're getting more than the step-by-step strategy - you're also getting free tools!BONUS 1: Free Trading ToolkitBONUS CHAPTER 2:  Sets out how to effectively test a trading strategy using a demo account, a super important feature when testing out any new trading philosophy or strategy.5 stars and highly recommended for those interested in starting gap trading!