Filling the gap is a popular strategy where you buy a stock when it gaps down in the morning and then wait for it to fill the gap.

Many bloggers have written about how good this strategy is. However, there usually isn’t much evidence to support those claims.

I test the strategy on 20 Nasdaq stocks between 2008-2018 and find mixed results after transaction costs. Read more »


easy money trading

It was November 2008 and I was a graduate futures trader for a trading house in the UK. I’d been trading full time for only a couple of months.

The credit crunch was in full force and every day presented new challenges and headaches.

Until Lehman Brothers collapsed I had been doing well. Trading a small account, I was happily bringing in a reasonable £300 a day.

Then, everything changed. People thought the financial system might collapse and the markets went into chaos. The FTSE 100 would drop massively in the space of a couple of minutes.

Then, it would reverse almost as fast, for no other reason than traders being too scared to hold on to their shorts. Read more »