Stock Trading Knowledge

Using the Master Plan, swing trading opportunities are identified after the market closes. Trades are entered in the morning, usually within the first half hour of trading. When you enter the trade (and the decision rule you use) depends on whether or not the stock has gapped up or down from the previous days closing price. According to the Master Plan, a stock is considered to have gapped up when it opens 50 cents or more higher than the previous days close; it is considered to have gapped down when it opens 50 cents lower than the previous days close.
Most frequently, the stock price will open within 50 cents of the previous days close, neither gapping up nor gapping down.
The most common occurrence - the stock opens within 50 cents ($0.50) of the previous days close - the order can be placed a few minutes after the market opens.
Occasionally a stock gaps up 50 cents or more compared to the previous days close - the order is placed at least 30 minutes after the market opens.
Occasionally a stock gaps down 50 cents or more compared to the previous days close - the order is placed approximately 5 minutes after the market opens.
To summarize, if the stock gaps in the same direction as the trade, wait 30 minutes, and if the stock gaps in the opposite direction of the trade, wait 5 minutes.