This basically ties into the same philosophy as Rule 6 which is to try to
minimize overnight risk. Overnight gaps in equities occur all the time. But
they tend to occur more in less established companies, especially those in
the technology industry. Therefore in order to lessen overnight risk, look
to trade the better, more established blue chip companies, especially those found in the
S&P 500. For those of you who are willing to assume a bit more risk, you can
expand your universe to the Nasdaq 100 companies.
TradingMarkets subscribers have access to
16 quantitative
stock indicators and another
17 quantitative market bias indicators. These indicators are derived from
our proprietary database that includes millions of trades, and designed to give
you a short-term trading edge.
If you would like to access all 16 stock
indicators, 17 market bias indicators, along with many other tools, click here
for a free 7-day
TradingMarkets trial.
