NasGap is a guide to gap trading that claims to allow its users to profit by taking just 10 minutes out per day, by exploiting the gap between the NASDAQ index closing and reopening the next day. NasGap claims to have a strike rate of 80%.

What does the product offer?

The product provides its users with the knowledge they need to understand how to utilise gap trading to their advantage. Furthermore the creator of the product, John Piper provides you with a personal email address where you can contact him for further advice and information, a weekly update with additional information on how to maximise profits from trade. Finally you will receive a fortnightly update showing the best trades picked out by Mr. Piper and an explanation as to why they have been successful.

How does the product work?

The product utilises gap trading on the NASDAQ index to generate potential profit. Gap trading exploits the gap between the time the stock exchange closes and when it reopens and the resulting differences that may occur in a shares price. The difference occurs as trading of stocks can and do continue even when a stock exchange is closed. This means that the opening price can be substantially different to the closing price. Trading is based around the NASDAQ index as NASDAQ does not contain any financial institutions with the focus lying on technology and growth companies.

What is the initial investment?

Access to the program costs £197 and then there are the investments themselves. As is the case with many trading systems it is based on points rather than currency so in order to stretch profitability per trade expect around £1000.

What is the rate of return?

The rate of return seems to constantly change and be amended, starting by stating that you can earn “£55, £80 or £95 on your lunch break”. It then uses £270 per month as a figure. Later on it states you could make up to £445 per month regularly then immediately provides an example of £890 made over the course of a month. Given the nature of the scheme low end returns seem the most likely outcome.

Conclusion

The credentials of Mr. Piper seem unquestionable. A quick search on both he and his business partner Mark Austin produce a series of books and websites, including a book written by Mr. Piper in association with the Financial Times. There is definite pedigree here and the system certainly seems like a plausible method of money making with careful investigation but there are one or two things that don’t quite sit right. The first and strongest argument against the service lies in the website that advertises the product. There are no real efforts to show any evidence of profits made other than a few screenshots that by all accounts look to be of a spreadsheet.

There isn’t anything wrong with this per se but it is worth bearing in mind that I could produce a spreadsheet showing that I’d made £1 billion per day selling lemonade at the side of the road and it wouldn’t make it true. The second part that really worries me is the fact that the amount you can earn seems to swap and change so much that your actual profit is really just guess work. If it were me, I’d definitely be looking at the bottom end of the scale and count anything more as a bonus. Final thoughts? This product seems to be presented by a pretty strong team, especially compared to the usual bloggers and “online marketers” who offer the majority of these products. That having been said the lack of any tangible does evidence casts a shadow of doubt over the whole thing.