Short-Term Profits With Gap Trading by Glaister Welsh
ARTICLE SYNOPSIS ...Short-Term Profits With Gap Trading by Glaister Welsh
Mispriced stocks are often caused by gaps, which you can take advantage of by applying a strategy that generates above-average returns while reducing your risk. Check it out.
A convergence trading strategy is based on the theory that when the price of a stock or stock portfolio significantly deviates from its long-term trend, it will return to its original trend sooner or later. Normally, convergence trades tend to move prices toward their long-term equilibrium values and, thereby, stabilize markets. However, some research suggests that i...