I want to differentiate between a quick trade and the smarter trade....but we will experience the following scenario: market drops=people buy the pullback b/c they think it is going higher=here is their chance to get in on this rally. But it will fall short of the previous highs and go lower=well we needed a healthier pullback=buy again=it pops=but again lower highs. Maybe a third buyin b/c they think this is the big correction we needed to go much higher=move fizzles out=and less people buyin the dips=momentum gaining=selling increases=people`s contextual references start to adjust=here the recession word by pundits. people stop buying the dips=semi-smart money starts shorting=selling increases=doom & gloom talk from cnbc=market starts falling=people bail out=dumb money starts shorting=market sells off further=becomes oversold near-term=smart money covers and buys oversold market conditions for a nice pop=then shorts again as market falls like a knife from may-august=smart money looks for some nice bargain value plays=$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
kewl, all these posters keep fuelin' da rally non-stop...keep at it cuz once u give up we are gonna tumble.
that`s why there are markets.....different opinions---but even the most ardent bulls have to rationally think the risk reward trade is 1 dollar up and ten dollars down from here.
If you keep repeating it every week BlueStreek then eventually you'll be proven right. Reminds me of the old adage; If you make predictions for a living - Make a lot of them.
One has to love those not so subtle syllogisms, The smart money is short, I am short, so I am smart ! "Smart" money is a myth. There are people placing bets on the market, some successful, some not. But , for some reason, some people like this notion of "Smart" money. Probably for the implication of the syllogism, that they are smart.
get it right .......if you fancy yourself a logician. IF P THEN Q P ------------------- /: Q VALIDITY......AND TRUTH ARE ENTIRELY DIFFERENT MATTERS............ I would define smart money as "more sophisticated" and reacts slightly ahead of the rest of the herd mentality,...i.e.,....to act slightly before others within the market to provide for an EDGE! You perma bulls need an ingraved invitation to sell.....to get the fact that the top is here.....and maybe you should adjust your trading strategy next week
most retail traders LOSE money i think it is reasonable to distinguish them from people who don't. there are a heck of a lot of people/institutions that have been trading for decades and making a handy profit the whole time they could be reasonably distinguished as smart. i consistently make money trading futures, so i guess i am "smart money" i was DEFINITELY NOT smart money for about a year trust me on that one. i paid the price to learn this profession and there are tons of people out there who currently trade as badly as i did. i am certain of it.