I have a good way to make money...since most people lose money trading...that would mean their natural intuition is usually wrong.. This creates a good strategy...If your gut says stock is going up... then you short the stock big time.. And if you think the stock is overbought and could pull back....BUY more... LOL....this is the George Costanza(Seinfeld) way of trading...it might just work... I will patent my style...call it Counter- Intuitive Trading Techniques
lol...actually I think you are on to something! it's just how you handle the big mover (no matter on which side you are that counts!) Think about this for a bit and put on your hedge...
Give it a try! I tried something like that a while ago, but things always reverted to the mean. You always go back to your gut. Gotta have a system to counter that feeling that is regulated and adaptable, Ciao all!
Counter trade .. or fading .. perhaps no more than semantics. You enter a trade to take out a profit. The market moves up and down. Hold on, you will say, its not that simple. It is. Its hard for most traders to see the market as just a facility. It goes up and down. The market is neutral. Your mind correspondingly has to be open and has to be neutral too. There are no trends, no edges. Move all the clutter and other mindf**k stuff right out of your way There are just upmoves and downmoves; how big each time? Best buy at the bottom; best sell at the top. Completely and utterly simplistic, you exclaim, I know all that, its obvious. Sure. Just nail it down.
Datradr Whether you do it your way or the totally opposite way, make sure you do one thing... take your losses with discipline... Whatever method you use, if you do the last thing, your odds of being a winning trader increase exponentially...
http://www.elitetrader.com/vb/showthread.php?s=&threadid=64970 similar discussion here, some brokers knowing that majority will lose their capital in futures trading consider all margins as 100% profit, as they don't even bother placing orders at market.