Hello Gene,

Yes, that is correct, the buy stop was honored because LNKD opened AT OR ABOVE $128. This would therefore trigger the buy stop, which becomes a market order after the buy stop price is reached.

You may be confusing a buy stop order with a buy limit order. With the latter, we would only get filled at a price that is at or BELOW the $128.

Here’s a link that may help you to understand order types better: http://www.schwab.com/public/schwab/resource_center/expert_insight/investing_strategies/trading/understanding_order_types.html

If you have any other questions, just let us know.

Deron

Much of the risk is removed if you wait to see the initial price reaction after earnings. When there are large “breakaway” gaps on high momentum, that momentum typically carries the stock much higher (or lower if a gapdown). This is the basis of momentum trading and you can read more about how that works in this post: http://blog.morpheustrading.com/2780

The key when buying opening gaps immediately after earnings is to set a stop below the low of the day on the first day it gaps up. If the intraday low of that day is violated, it is a false breakout and you simply execute the stop order and cut the loss quickly. But when they move in the right direction, the moves are explosive, thereby giving much greater than a 2 to 1 reward-risk ratio.

Swing trading is no more dangerous than daytrading or long-term “buy and hold” investing IF preset stop orders are always used on each and every order, which minimizes risk. But without stop orders on every trade, ANY type of trading is “dangerous.”