Is
"Mastering the Gap" the new suckers trap?
My email box is full offers for webinars that
will teach me to master the gap. Some may provide useful
information.
Could buying just because prices have filled
the gap be a trap for uneducated investor that generates frustration
and losses?
The above example is perfect to make a case
for this. Prices gaped up and the day after investors jumped in as
prices filled the gap. And then prices went up for a few more days
and the upward momentum ran out of steam. All of this was
predictable.
Unfortunately some investors’ place their
stops just below their purchase and were stopped out after prices
came down again. What is unseen to many investors is that when
prices moves back down, the down move had a definable distance to
go. This resulted in prices coming down again below their stops.
This is all part of the ebb and flow of prices.
To the surprise of those who just got stopped
out prices then gaped up which generated frustration on the part of
the new investors. To make matters worse those that are gap theory
enthusiasts probably had buy orders in after the gap past 115, only
never to be filled.
The moral of the story is that there is so
much more to learn about markets than just "mastering the gap" and
perhaps there is a time to use gap theory and a time not to.
Ron has been trading for over 10 years and
learned the Andrews techniques from Dr Alan Hall Andrews personally.
He can be reached at
ron@andrewscourse.com where he teaches the Advanced Andrews
Course with a manual, videos and a private email group.
Copyright RCS 2012 all rights reserved
The Modern Advanced Andrews Course
Based upon the techniques developed by Alan Hall Andrews and Roger Babson
Prior to the crash of 1929, Dr. Alan Andrews made several million trading in a few short years. Later in his life he used the Babson techniques to make money faster. We are privileged to be authorized by him to be authorized to pass his techniques on to you.
The publisher of Traders World challenged us to show evidence that Dr. Andrews not only was a great trader, made lots of money and showed others how to do it.
Showing pictures of elegant homes doesn't prove it as he could have inherited it. Getting trading records from during the period of 1920 to 1980 from someone else's account.....well even the IRS can't do that.
Video links below
See Documents Showing how he made his $$
See limited edition leather edition available
See Andrews (click here) and Ron Jaenisch discussing Babson Techniques
We can be reached at support@andrewscourse.com.