Are you more comfortable buying or selling previous highs?

If someone said you had to trade but you could only enter by:

1) buying previous higher highs (and selling previous lower lows)

or

2) selling previous higher highs (and buying previous lower lows)

but your exits would be entirely up to you, which would you be more comfortable doing?

 

Sell the previous high and if it goes against you, stop and reverse.

 

Actually my main strategy is this as I used to sell at previous high and buy at previous low and it is quite good. Stop loss is there to prevent the extra loss if the price just keep going to break the previous high and low.

 

Depends on the instrument.

 

Some random notes I took listening to Raymond Burchett.


* Understand what we can control and let go of what we cannot control or know

* Replace ego with conviction, that coming from knowing you've done the necessary work and preparation

* Don't set time based profit goals(daily, weekly...), but do set individual trade profit targets

* Trading is an art form

* Focus on the information that matters to YOU (not necessarily what others think is important)

 

Most noobs would buy the high, because they see price go up and it makes them feel comfortable as it gives them confirmation. This gives you a hint as to what the pros do and what a possible edge could be based on...

 

How would buying previous highs have done today?

How would selling previous highs have done today?

 

I'd rather buy the high. If the stock is at its high the sellers definitely aren't in control. Though like anything else in trading, it depends.

 

Buy highs in an uptrend.

Seems like selling highs wouldn't work very often unless maybe you're in chop or happen to get a top that happens to be a double top. If price didn't make a double top and instead made a higher high and then started going back down, you wouldn't have entered.

 

I like this


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To the OP

Appears you’re still searching for a simple answer - where none exists


So my response to you;

Am I a trend trader, or a RTM trader

Is price trending, in a range, in the process of reversing, or in the process of pulling back

What time of day is it

There are more…, but I think this’ll nicely do for now

All rhetorical of course

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To trade – one first must identify a few things

Else, consider yourself blindfolded…, standing in a dark room… shooting at a moving target – yippie ki yay


RN