Gap Trading - quote :

[Rams]

How many times have you seen the market or individual stocks open significantly higher or lower than their previous close, then suddenly reverse direction and fill their "opening gap"? Did you ever wonder why this happens? It happens for a variety of reasons, but results in professional traders taking money from amateur traders anxious to get in or out of the market at the open. Professional traders have two things that amateur traders don't.knowledge and experience.