Don’t Chase Stocks Gapping Up!
When swing trading, it’s crucial to be aware of the potential pitfalls that can derail your strategy. One common mistake many swing traders make is chasing stocks gapping up significantly higher at the open. While it may be tempting to jump on board, hoping to catch a ride on the momentum train, this approach often leads to disappointment and lost profits.
That’s because more times than not, a stock, when it gaps higher, will ultimately fill their gap. Maybe not the same day but eventually they will. And why do stocks fill their gaps? A gap is a price range where no trading takes place, often occurring between the previous day’s close and the next day’s open. When a stock gaps up, it means that the opening price is significantly higher than the previous close. This can be due to various factors, such as positive earnings reports, favorable news, or industry-wide events.
The Street likes to fade the stocks gapping higher
However, the initial excitement that drives the price up can quickly fade as traders begin to take profits and reassess the stock’s true value. This profit-taking can lead to a rapid decline in price, causing the stock to “fill the gap” by returning to its previous trading range.

As a swing trader, it’s essential to be aware of this phenomenon, and to not let it suck you by getting undisciplined in your trading and playing the gap. Instead, focus on identifying stocks with strong fundamentals and sustainable momentum. By sticking to your trading plan and avoiding the hype surrounding gap-up stocks, you can minimize your risk and maximize your potential for long-term success.
While it may be enticing to chase stocks that gap up, it’s crucial for swing traders to exercise caution and discipline. By understanding the dynamics of gap fills and focusing on high-quality setups, you can sidestep this common pitfall and improve your overall trading performance.
Tesla (TSLA) Gaps Up
Just today we had a perfect example of a massive gap upwith Tesla (TSLA) and I’ve gone ahead and done a video on it for you to enjoy as well. I also cover some other recent gap ups with Microsoft (MSFT), Alphabet (GOOGL) and Meta (META).
Become part of the Trading Block and get my trades, and learn how I manage them for consistent profits. With your subscription you will get my real-time trade setups via Discord and email, as well as become part of an incredibly helpful and knowledgeable community of traders to grow and learn with. If you’re not sure it is for you, don’t worry, because you get a Free 7-Day Trial. So Sign Up Today!
Hope to see you in there!

Welcome to Swing Trading the Stock Market Podcast!
I want you to become a better trader, and you know what? You absolutely can!
Commit these three rules to memory and to your trading:
#1: Manage the RISK ALWAYS!
#2: Keep the Losses Small
#3: Do #1 & #2 and the profits will take care of themselves.
That’s right, successful swing-trading is about managing the risk, and with Swing Trading the Stock Market podcast, I encourage you to email me (ryan@shareplanner.com) your questions, and there’s a good chance I’ll make a future podcast out of your stock market related question.
When should you increase your position size for swing trading in the stock market? Does the percentage that we dedicate to each of our swing trades change over the years or is it etched in stone? In this podcast episode, Ryan goes over his reason for increasing his position size in trading and what can lead a person to doing that for themselves.
Be sure to check out my Swing-Trading offering through SharePlanner that goes hand-in-hand with my podcast, offering all of the research, charts and technical analysis on the stock market and individual stocks, not to mention my personal watch-lists, reviews and regular updates on the most popular stocks, including the all-important big tech stocks. Check it out now at: https://www.shareplanner.com/premium-plans
📈 START SWING-TRADING WITH ME! 📈
Click here to subscribe: https://shareplanner.com/tradingblock
— — — — — — — — —
💻 STOCK MARKET TRAINING COURSES 💻
Click here for all of my training courses: https://www.shareplanner.com/trading-academy
– The A-Z of the Self-Made Trader –https://www.shareplanner.com/the-a-z-of-the-self-made-trader
– The Winning Watch-List — https://www.shareplanner.com/winning-watchlist
– Patterns to Profits — https://www.shareplanner.com/patterns-to-profits
– Get 1-on-1 Coaching — https://www.shareplanner.com/coaching
— — — — — — — — —
❤️ SUBSCRIBE TO MY YOUTUBE CHANNEL 📺
Click here to subscribe: https://www.youtube.com/shareplanner?sub_confirmation=1
🎧 LISTEN TO MY PODCAST 🎵
Click here to listen to my podcast: https://open.spotify.com/show/5Nn7MhTB9HJSyQ0C6bMKXI
— — — — — — — — —
💰 FREE RESOURCES 💰
My Website: https://shareplanner.com
— — — — — — — — —
🛠 TOOLS OF THE TRADE 🛠
Software I use (TC2000): https://bit.ly/2HBdnBm
— — — — — — — — —
📱 FOLLOW SHAREPLANNER ON SOCIAL MEDIA 📱
X: https://x.com/shareplanner
INSTAGRAM: https://instagram.com/shareplanner
FACEBOOK: https://facebook.com/shareplanner
STOCKTWITS: https://stocktwits.com/shareplanner
TikTok: https://tiktok.com/@shareplanner
*Disclaimer: Ryan Mallory is not a financial adviser and this podcast is for entertainment purposes only. Consult your financial adviser before making any decisions.
