contrarians and contra trading

Discussion in 'Trading' started by rs7, Jun 21, 2002.

  1. I tried this logic a couple of Fridays ago. It didn't work then. Maybe I was early...
     
    #21     Jun 21, 2002
  2. "buy the dips" was a mantra for the nineties.

    we ain't in the nineties no mo'

    i submit 'sell the rallies' for the new theme of choice
     
    #22     Jun 21, 2002
  3. rs7

    rs7

    I agree, but still, there are (or had been) up days and there still are strong stocks (intraday). This is more what I mean. Gotta remember, we are talking about daytrading. At least I am.
     
    #23     Jun 21, 2002
  4. it has a ring to it. but then again, them short sqeezes hurt.

    <a href="http://www.autism.org/temple/squeeze.gif">
    <img src="http://www.autism.org/temple/squeeze.gif"></img></a>
     
    #24     Jun 21, 2002

  5. True. It seems that bear rallies are harder to game though, because they are so sharp and ephemeral. Catching bottoms is tricky business because you never know when some waterlogged long is going to dump his shares on you. Generally easier to stick with the macro and keep the wind at your back imho. More surprises go in your favor that way.
     
    #25     Jun 21, 2002
  6. lol what the hell is that? and how would you even find a picture like that?!
     
    #26     Jun 21, 2002
  7. its a 'squeeze machine.' I obtained it from one of my sources. It's a visual aid to explain the experience of a 'short squeeze,' from the shorts' perspective.


    <a href="http://www.gekkota.com/Photos/photosbody.html"><img src="http://www.gekkota.com/Photos/Images/Tsteud2.jpg"width=100 height=100></img></a>
     
    #27     Jun 21, 2002
  8. rs7

    rs7

    This is why I keep such tight stops when I buy a dip now. ALSO, this is why I am trading on average less than 5% of what I did when we had an up-trending market. The short squeezes get so painful. Intraday, I almost never had longs go up as fast as shorts go against me.
    Also, catching bottoms if DEFINITELY not my style. Today I took a shot at the close on a few longs to hold overnight. So now I have small positions in 4 stocks. If you read how I trade normally, I would have (when momentum worked) a lot of large positions. Today was a flier. Not the norm.
     
    #28     Jun 21, 2002
  9. 10-4, makes sense

    i think many of us are closer to the vest these days


    p.s. anyone else think chas might be slowly going insane?


    [​IMG]
     
    #29     Jun 21, 2002
  10. nice gecko, mate.
     
    #30     Jun 21, 2002