A longtime friend who has been deeply involved in the stock market for more than a decade shared a very steady trading approach. Following this logic, it may be hard to get rich overnight, but it can generally help avoid the risk of suffering major losses. His logic is simple: only build positions in the major banks’ blue-chip stocks. Whenever an individual stock gaps down at the open and the decline exceeds 2%, then enter in batches with a big buy to snap up bargains. Based on his years of hands-on experience, he concluded that these bank stocks will, in most cases, later consolidate, recover, and rise again.