Trading the Gap

Written by Bill Morrison


Continued from page 1

Given that we might want to consider fading a small gap, we can give a it a bit of 'room' to develop before committing to a trade - it is, after all, likely to come back. The average trader seems to prefer watchingrepparttar first hour (the time when allegedlyrepparttar 112035 'silly' money comes and goes), and then deciding on a trade. Within this first hour, a small gap will often have 'settled', or even begunrepparttar 112036 process of falling back towardsrepparttar 112037 previous close. Whateverrepparttar 112038 situation, a 'range' will have been defined by that first hour's action - generallyrepparttar 112039 strategy then would be to go long above that range, and short below it.

With this in mind, it is helpful to considerrepparttar 112040 trading onrepparttar 112041 basis ofrepparttar 112042 '4 types' of gap that are generally supposed to exist. The first of these isrepparttar 112043 'Full Gap Up'. This happens ifrepparttar 112044 opening price is greater than yesterday's high price - A big jump, in other words. Likewise, a 'Full Gap Down' is whenrepparttar 112045 opening price is less than yesterday's low. A 'Partial Gap Up', onrepparttar 112046 other hand, happens when today's opening price is higher than yesterday's close, but NOT higher than yesterday's high. Inrepparttar 112047 same way, a 'Partial Gap Down' is whenrepparttar 112048 opening price is below yesterday's close, but NOT below yesterday's low.

These 4 gap types each have a long and short trading signal, giving us 8 gap trading strategies which are discussed in detail on www.traders101.com . All are based on a gap trading strategy in which you wait 1 hour afterrepparttar 112049 market open so a trading range can be established. Trading before that time is up is possible, although it involves more risk. As always, sensible stoploss methods to minimize losses if things go wrong are mandatory! Good luck with it!

Bill Morrison trades the Nasdaq, and writes for www.traders101.com


Profits with rental properties

Written by Jakob Jelling


Continued from page 1

3. When you have a potential property identified estimaterepparttar possible rental income you could expect from this property based on comparable rentals inrepparttar 112034 area.

4. Determine your anticipated cash flow fromrepparttar 112035 rental. You will need to consider income from rent compared against all expenses includingrepparttar 112036 mortgage, insurance, property taxes, maintenance, and repairs.

5. Be sure to reviewrepparttar 112037 potential tax consequences of your purchase.

6. Rentrepparttar 112038 property until you determine it is in your best interest to sell it.

Because ofrepparttar 112039 potential financial and tax consequences of your decisions, it is very important to consult with a professional real estate agent throughout this process. You will also likely needrepparttar 112040 assistance of an attorney and a tax advisor.

Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.


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