Terminology
When a stock opens trading at a higher or lower price than it closed at the previous trading day
What is a gap?
The maximum float size for Gap & Go
20 million shares
Name of the presenter on the video we watched in class
What is Ross Cameron?
The best time to trade this strategy
What is in the morning (9:30 to 10:30-11:00 AM)?
"Gap and Go" is described by Ross Cameron as a strategy easily accessible for this type of day trader
What are- Beginning traders?
Term for the regular shares a company has issued to the public that are available for investors to trade
What is the float?
The float is derived by taking a company's outstanding shares and subtracting any restricted stock, which is stock that is under some sort of sales restriction. Restricted stock can include stock held by insiders but cannot be traded because they are in a lock-up period following an initial public offering (IPO).
Share price range for the Gap & Go strategy
What is $2-$20?
Name of the presenter's trading education company
What is Warrior Trading?
The best entry point to initiate a trade in this strategy
What is the first pullback of the day?
Time of day we should be looking for gap-and-go trade ideas
What is early morning (premarket)?
Rule that requires day traders to maintain $25,000 in maintenance equity in their accounts
What is the Patter Day Trader Rule?
Besides top-gappers, float, and price range, the fourth criteria for searching for good gap & go candidates
What is- breaking news as a catalyst?
Reason why we trade this strategy in the morning
What is- Voume of shares traded often fizzles out in the afternoon
The only place at High Schools North and South where students get to simulate trading strategies
What is- Emerging Financial Markets?
When a stock's price declines gradually as its trading volume declines, usually heading towards a moving average indicator
What is a pullback?
The criteria that we first use to search for gap & go ideas
What are Top gappers / Top premarket gappers?
Technical Indicators that Ross Cameron uses on his chart, and we have added on our Investopedia charts (Too bad we can't save them into our charts!)
What are Simple Moving Average (SMA) (9-bar) and Volume-Weighted Average Price (VWAP)?
Explain the kind of gains we are looking for in the strategy
What is small piece of big gains?
Niumber of Investopedia windows does it make sense to have open
What are 3 - one with a trading ticket, one for a 5-minute chart, one with a 1-minute chart
Using charts and indicators to attempt to forecast the price movement of a security
What is Technical analysis?
The dynamic we are looking for by screening stocks with the 4 criteria
What is- a supply/demand situation that benefits us?
The importance of having the two technical indicators added to our charts
What is- helps to visualize pullbacks to moving averages?
The reason why we look for small-float, low-price stocks gapping up on breaking news
What is - Lots of demand chasing a small supply
Which time frames on charts are most useful for this strategy?
What are 5-minute and 1-minute charts?