What Happens After a Big One-Day Gain
What happens after a big one-day gain? We measured the top 20 gainers in every session for three years: next-day medians, means, gap-and-fade rates.
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What happens after a big one-day gain? We measured the top 20 gainers in every session for three years: next-day medians, means, gap-and-fade rates.
The 7% sell rule says sell any stock that falls 7 to 8% below your buy price. The recovery math behind the cap and why a stop order can fill well below 7%.
A stop order becomes a market order and fills at any price. A stop-limit becomes a limit order and can miss the exit entirely. Five years of gap data show it.
A gap up or gap down is the distance from the prior close to the 9:30 open, after 17.5 closed hours. SPY overnight gap size, Mondays widest, plus stop risk.