{"id":8022,"date":"2022-10-27T03:55:39","date_gmt":"2022-10-27T07:55:39","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=8022"},"modified":"2023-01-24T12:11:15","modified_gmt":"2023-01-24T17:11:15","slug":"gap-trading-strategy","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/gap-trading-strategy\/","title":{"rendered":"Gap Trading Strategy: 5 Top Ways to Buy Stocks Gapping Up from Earnings"},"content":{"rendered":"\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2020\/12\/AdobeStock_78207807.jpeg\" alt=\"Gap trading strategy for earnings\" class=\"wp-image-8058\" width=\"694\" height=\"525\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/12\/AdobeStock_78207807-110x83.jpeg 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/12\/AdobeStock_78207807-300x227.jpeg 300w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/12\/AdobeStock_78207807-768x581.jpeg 768w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/12\/AdobeStock_78207807-1024x774.jpeg 1024w\" sizes=\"auto, (max-width: 694px) 100vw, 694px\" \/><\/figure>\n\n\n\n<h1 class=\"wp-block-heading\">A winning gap trading strategy for stocks can lead to explosive gains, but only if you know the proper time to buy. Here are 5 top ways to enter breakaway gap stocks during earnings season.<\/h1>\n\n\n\n<p>If there\u2019s one thing that makes for a <em>perfect opportunity for stock traders<\/em>, it\u2019s earnings season. <\/p>\n\n\n\n<p>When a stock blows away analyst earnings expectations, investors bid the stock higher in the post and pre-market. This causes a stock to <a href=\"https:\/\/www.investopedia.com\/terms\/g\/gapping.asp\" data-type=\"URL\" data-id=\"https:\/\/www.investopedia.com\/terms\/g\/gapping.asp\" data-schema-attribute=\"mentions\" target=\"_blank\" rel=\"noopener\">gap up<\/a> and open well above its prior closing price. <\/p>\n\n\n\n<p><strong>Buying gap up stocks can lead to explosive short-term gains<\/strong> (<em>especially<\/em> in a bull market), but timing is key. It&#8217;s crucial to know exactly when and how to buy stocks gapping up from earnings.<\/p>\n\n\n\n<p>The gap trading strategy is widely used among professional traders because it has proven extremely effective. That&#8217;s why our <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\">swing trade alerts<\/a> service focuses on a simple gap trading technique to help members profit during earnings season.<\/p>\n\n\n\n<p>Yet, newer traders are often surprised by just how reliable a winning gap trading strategy can be. Despite the huge profits an overnight gap trading strategy can yield, many<strong> swing traders often make the <em>costly mistake<\/em> of avoiding explosive breakaway gap<\/strong> <strong>stocks<\/strong>.<\/p>\n\n\n\n<p><em>Have YOU ever shied away from buying a <a href=\"https:\/\/www.investopedia.com\/terms\/b\/breakawaygap.asp\" data-type=\"URL\" data-id=\"https:\/\/www.investopedia.com\/terms\/b\/breakawaygap.asp\" data-schema-attribute=\"mentions\" target=\"_blank\" rel=\"noopener\">breakaway gap<\/a> that went on to be a monstrous winner? <\/em><\/p>\n\n\n\n<p><em>Perhaps YOU wanted to buy a stock gapping up, but were unsure of how to find a proper entry point?<\/em><\/p>\n\n\n\n<p>If so, this exclusive gap trading strategy article is <em>just for you.<\/em><\/p>\n\n\n\n<p>Let\u2019s take a look at 5 top ways you can buy stocks gapping up from earnings&#8212;just in time for the upcoming <a href=\"https:\/\/www.forbes.com\/advisor\/investing\/what-is-earnings-season\/\" data-type=\"URL\" data-id=\"https:\/\/www.forbes.com\/advisor\/investing\/what-is-earnings-season\/\" data-schema-attribute=\"mentions\" target=\"_blank\" rel=\"noopener\">earnings season<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2022\/10\/gaps-scaled.jpg\" alt=\"gaps\" class=\"wp-image-14350\" width=\"640\" height=\"427\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2022\/10\/gaps-110x73.jpg 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2022\/10\/gaps-768x512.jpg 768w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2022\/10\/gaps-1536x1024.jpg 1536w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2022\/10\/gaps-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/gap-trading-strategy\/#How_do_you_trade_gaps_in_the_market\" >How do you trade gaps in the market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/gap-trading-strategy\/#5_top_ways_to_buy_a_Breakaway_Gap_stock\" >5 top ways to buy a Breakaway Gap stock<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/gap-trading-strategy\/#Snapchat_SNAP_28_gap_up_after_earnings\" >Snapchat ($SNAP) +28% gap up after earnings<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/gap-trading-strategy\/#The_SNAP_earnings_gap_up_had_everything_we_look_for\" >The $SNAP earnings gap up had everything we look for:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/morpheustrading.com\/blog\/gap-trading-strategy\/#Gap_Trading_Strategy_A_closer_look_at_each_buy_entry_point\" >Gap Trading Strategy: A closer look at each buy entry point<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/morpheustrading.com\/blog\/gap-trading-strategy\/#Snapchat_SNAP_gains_80_in_3_months_after_gap_up_buy_entry_point\" >Snapchat ($SNAP) gains +80% in 3 months (after gap up buy entry point)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/morpheustrading.com\/blog\/gap-trading-strategy\/#Simple_tips_for_a_reliable_gap_trading_strategy\" >Simple tips for a reliable gap trading strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/morpheustrading.com\/blog\/gap-trading-strategy\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_do_you_trade_gaps_in_the_market\"><\/span>How do you trade gaps in the market?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you&#8217;re a new trader, it can especially be a little scary to buy a breakaway gap stock that is already showing a massive percentage gain. You may think the price is &#8220;too extended&#8221; or &#8220;overbought.&#8221;<\/p>\n\n\n\n<p>However, the <em>20-year <\/em>track record of our <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" data-type=\"URL\" data-id=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\">swing trading service<\/a> has proven it&#8217;s actually a <strong><em>major Buy signal <\/em>when a stock gaps sharply higher<\/strong> after reporting earnings (or other news).<\/p>\n\n\n\n<p>Some of these gapping stocks are already up 15% to 30% (above the prior day&#8217;s close) <em>before<\/em> we even begin to buy&#8212;<strong>yet these &#8220;gap and go&#8221; stocks often become our biggest winners.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_top_ways_to_buy_a_Breakaway_Gap_stock\"><\/span>5 top ways to buy a Breakaway Gap stock<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Morpheus gap trading strategy focuses on 5 simple entry points for buying breakaway gap stocks.<\/p>\n\n\n\n<p>Below, we use the example of internet stock Snapchat ($SNAP) to show each of the 5 entry techniques.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Snapchat_SNAP_28_gap_up_after_earnings\"><\/span>Snapchat ($SNAP)<br \/>+28% gap up after earnings<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Snapchat ($SNAP) gapped sharply higher after reporting strong earnings, closing +28% higher on 10x average volume&#8212;<em>on just the first day post-earnings.<\/em><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_SNAP_earnings_gap_up_had_everything_we_look_for\"><\/span>The $SNAP earnings gap up had everything we look for:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Large percentage gain<\/li>\n\n\n\n<li>Monster volume<\/li>\n\n\n\n<li>Breakaway gap to new highs<\/li>\n<\/ul>\n\n\n\n<p>$SNAP also had both impressive earnings growth and high liquidity:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/morpheustrading.com\/~rick\/charts\/2021\/221025SNAP.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/morpheustrading.com\/~rick\/charts\/2021\/221025SNAP.png\" alt=\"Gap trading strategy with $SNAP chart\" class=\"wp-image-14320\" width=\"713\" height=\"526\" title=\"\"><\/a><figcaption class=\"wp-element-caption\"><em>Press chart to view larger image<\/em><\/figcaption><\/figure>\n\n\n\n<p><iframe loading=\"lazy\" width=\"580\" height=\"680\" src=\"https:\/\/4966a6ff.sibforms.com\/serve\/MUIFAOyl4S5Qdajs7q3LemJKudDbMHB24p2SAorKuWWuauy3e1eFPtLgTh5BoPCh3XzIz3rZE_YyIqvc9IEl_xMkRg3MTlG0Zn5eqY3J2eKMjOE-jPuS43ZXewKssUaGt1kllR56wV2u1lBXoYfKSzEgeeTjLyjdSao87VmqsbDtgcy4jNwHMSzf0Rl346rIoBjtZwf-DX0V6tbn\" frameborder=\"0\" scrolling=\"auto\" allowfullscreen style=\"display: block;margin-left: auto;margin-right: auto;max-width: 100%;\"><\/iframe><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Gap_Trading_Strategy_A_closer_look_at_each_buy_entry_point\"><\/span>Gap Trading Strategy: A closer look at each buy entry point<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Match each number below with the chart annotations above:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Above high of the gap up day &#8211;<\/strong> Buying on a rally above the high of the gap-up day is a solid entry.  This entry technique sometimes requires a wide stop down to the low of the gap up day, but this buy point <em>works especially well when the stock explodes higher right away.<\/em> This entry worked with $SNAP, but required some patience to hold.<br \/><\/li>\n\n\n\n<li><strong>Pullback to 10-day MA &#8211;<\/strong> After a massive earnings gap, the first pullback that touches the 10-day moving average (teal line) can be bought. This is especially true when that touch occurs <em>above the close of the gap up day<\/em>, typically a strong area of support in a high-quality gap up.<br \/><\/li>\n\n\n\n<li><strong>Breakout above consolidation &#8211;<\/strong> The first breakout above the high of a brief consolidation can also be bought. This entry did not lead to an immediate follow-through in price, but definitely could have.<br \/><\/li>\n\n\n\n<li><strong>Pullback to 20-day MA &#8211; <\/strong>Similar to Entry #2, the first pullback to the 20-day exponential moving average is in play following a breakaway gap.  The <em>20-day EMA should be above the low of the initial gap up day <\/em>(as it was in $SNAP).<br \/><\/li>\n\n\n\n<li><strong>Breakout above short-term downtrend line &#8211; <\/strong>A gapping stock will often form a short-term downtrend line as it pulls back slightly from its high. It then becomes a valid buy entry when the price rallies above that downtrend line. We purchased $SNAP in the <em><a aria-label=\"Wagner Daily (opens in a new tab)\" href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">Wagner Daily<\/a><\/em> stock portfolio using this entry method (rally above the downtrend line after a week of tight-ranged trading above the 20-day EMA).  We were lucky to enter $SNAP here because the breakout at Entry #3 could have led to an explosive move higher that never looked back.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Snapchat_SNAP_gains_80_in_3_months_after_gap_up_buy_entry_point\"><\/span>Snapchat ($SNAP) gains +80% in 3 months (after gap up buy entry point)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The chart below shows the impressive performance of $SNAP after its earnings gap up.<\/p>\n\n\n\n<p>The price of $SNAP rocketed +80% higher after our November 18 buy entry above the downtrend line (#5 method):<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/morpheustrading.com\/~rick\/charts\/2021\/221026SNAP2.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/morpheustrading.com\/~rick\/charts\/2021\/221026SNAP2.png\" alt=\"Breakaway gap trading strategy with $SNAP\" class=\"wp-image-14330\" width=\"705\" height=\"553\" title=\"\"><\/a><figcaption class=\"wp-element-caption\"><em>Press chart to view larger image<\/em><\/figcaption><\/figure>\n\n\n\n<p>For our <a href=\"https:\/\/new.morpheustrading.com\/blog\/swing-trading-vs-day-trading\" data-type=\"URL\" data-id=\"https:\/\/new.morpheustrading.com\/blog\/swing-trading-vs-day-trading\">swing trading time frame<\/a>, $SNAP could have been easily sold for a <strong>20-30% gain just a few weeks after entry.<\/strong><\/p>\n\n\n\n<p>Longer-term position traders could have held through the first touch of the 50-day MA (see chart above) to catch a <strong>gain of up to +80%<\/strong> before peaking.<\/p>\n\n\n\n<p>Huge post-earnings gains like $SNAP enjoyed are relatively common in a bull market. Our proven gap trading strategy works simply and efficiently.<\/p>\n\n\n\n<p><em>Profits should be taken quicker in a bearish market<\/em>, but there are still plenty of profitable breakaway gap opportunities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Simple_tips_for_a_reliable_gap_trading_strategy\"><\/span>Simple tips for a reliable gap trading strategy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h5 class=\"wp-block-heading\">Our gap trading strategy rules limit us to only buying stocks that:<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Have strong quarterly earnings or sales growth (+20% or more)<\/li>\n\n\n\n<li>Are extremely liquid<\/li>\n<\/ul>\n\n\n\n<p>The gap should also occur while the stock is in a solid <a href=\"https:\/\/new.morpheustrading.com\/blog\/best-stock-breakouts\/\" data-type=\"URL\" data-id=\"https:\/\/new.morpheustrading.com\/blog\/best-stock-breakouts\/\">base<\/a>. The price should have at least just broken out from a base one to two weeks prior. <\/p>\n\n\n\n<p><strong>TIP &#8211;<\/strong> <em>We are not looking to buy a gap up in the middle of a strong, existing uptrend (take a pass)<\/em><\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Opening price action<\/h5>\n\n\n\n<p>If you are able to trade the stock market open, then you can get a relatively low-risk entry by <strong>buying a move above the opening 5-minute high<\/strong> on the gap up day.<\/p>\n\n\n\n<p>However, the <strong>5 entry techniques above are<\/strong> <strong>designed for part-time swing traders <\/strong>who cannot watch the market all day.<\/p>\n\n\n\n<p>This is why the <a href=\"https:\/\/morpheustrading.com\/best-swing-trading-strategy\" data-type=\"URL\" data-id=\"https:\/\/morpheustrading.com\/best-swing-trading-strategy\" target=\"_blank\" rel=\"noreferrer noopener\">Morpheus trading strategy<\/a> is designed to be the <a aria-label=\"perfect side hustle (opens in a new tab)\" href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">perfect side hustle<\/a>.<\/p>\n\n\n\n<p><iframe loading=\"lazy\" style=\"display: block; margin-left: auto; margin-right: auto; max-width: 100%;\" src=\"https:\/\/4966a6ff.sibforms.com\/serve\/MUIEAKQk6AL3TLiht1kFvkNOpK0nPdNO5axSUsrM3rnsdfqOdftxUCLUnGR51ZjX84IgH1sDCbp9jyCvAUfd8id386GGoBJIGjyCYPXu789_W2WQhL-wGWP0NgG3tS2kW_0nDGU3MVLxkUKqD5nJAbLiwbGn10Ev29hywfE9QiaGRHjBCzaiASSjSn5GiQL1mZlRKRQ6fUrn1yOu\" width=\"540\" height=\"675\" frameborder=\"0\" scrolling=\"auto\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <a href=\"https:\/\/school.stockcharts.com\/doku.php?id=trading_strategies:gap_trading_strategies\" data-type=\"URL\" data-id=\"https:\/\/school.stockcharts.com\/doku.php?id=trading_strategies:gap_trading_strategies\" data-schema-attribute=\"about\" target=\"_blank\" rel=\"noopener\">gap trading strategy<\/a> is simple, yet can be incredibly effective. This technique is particularly effective when stocks like Snapchat ($SNAP) are rallying steadily after reporting strong earnings growth.<\/p>\n\n\n\n<p>The goal isn\u2019t just to buy when a gap opens. Rather, your goal is to buy the right gap at the right time, then ride the profits until the bullish momentum stalls.<\/p>\n\n\n\n<p>Once you\u2019re able to do this consistently, the stocks you buy using the Morpheus breakaway gap trading strategy will become some of your most <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" data-type=\"URL\" data-id=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\">profitable swing trades<\/a>.<\/p>\n\n\n\n<p>Remember to <em>be selective<\/em> and insist on these three things:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Strong earnings and\/or sales growth<\/strong><\/li>\n\n\n\n<li><strong>Heavy volume (at least 3x greater than average) <\/strong><\/li>\n\n\n\n<li><strong>Explosive percentage move higher on the gap up day<\/strong><\/li>\n<\/ol>\n\n\n\n<p>The key to success is to <em>pick a stock that fits the rules outlined above, then be disciplined to follow your trading plan<\/em> and properly manage the trade for maximum profits.<\/p>\n\n\n\n<p>If you follow the 5 entry points outlined in this article, you should have a good idea of when and how to buy gapping stocks. If so, <strong>you\u2019re already in the best position to profit from a breakaway gap.<\/strong><\/p>\n\n\n\n<p>It can sometimes be mentally challenging to buy a huge, post-earnings breakaway gap, but staying focused on your personal <a href=\"https:\/\/new.morpheustrading.com\/blog\/trading-strategy\" data-type=\"URL\" data-id=\"https:\/\/new.morpheustrading.com\/blog\/trading-strategy\">trading psychology<\/a> can help.<\/p>\n\n\n\n<p>If you are <em>still<\/em> not a believer in buying gap up stocks, then start with a <em>small<\/em> position (ie. 25% of your normal position size) until you gain experience with this powerful <a href=\"https:\/\/morpheustrading.com\/swing-trade-setups\" data-type=\"URL\" data-id=\"https:\/\/morpheustrading.com\/swing-trade-setups\" target=\"_blank\" rel=\"noreferrer noopener\">swing trade setup<\/a>.  <\/p>\n\n\n\n<p>Finally, note the entry points discussed here are <em>just a guide<\/em> to our buying gapping stocks&#8212;not all gap ups will trade the same way.<\/p>\n\n\n\n<p class=\"has-luminous-vivid-amber-background-color has-background\"><strong>Ready to take your trading to the next level?<\/strong><br \/><br \/>Profit from our proven gap trading strategy for stocks. <strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" data-type=\"URL\" data-id=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\">Get started now<\/a> <\/strong>to receive our top Swing Trade Alerts of explosive stock picks. Includes professionally moderated Swing Trader Chatroom.<br \/><br \/>We have helped more than <em>70,000 traders since 200<\/em>2. Here&#8217;s what long-time member Stacy R. has to say:<br \/><br \/><em>&#8220;The Morpheus Team has taught me to not stray away from my discipline. Also, keeping losses small and proper position sizing is key.&#8221;<\/em><br \/><br \/><strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">Learn more<\/a><\/strong> about how <em>The<\/em> <em>Wagner Daily<\/em> can help improve YOUR trading results too.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A winning gap trading strategy for stocks can lead to explosive gains, but only if you know the proper time to buy. <\/p>\n<p>Here are 5 top ways to enter breakaway gap stocks during earnings season.<\/p>\n","protected":false},"author":2,"featured_media":14366,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-8022","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/8022","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=8022"}],"version-history":[{"count":42,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/8022\/revisions"}],"predecessor-version":[{"id":15706,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/8022\/revisions\/15706"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media\/14366"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=8022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=8022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=8022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}