You get slapped around a lot, but it has also made me a few hundred % a year for years. It just takes practice and iron balls.
I've got it worked into a mechanical system that is quite good. You have to endure an occasional serious DD, but it still has the best equity curve I've come up with in mechanical systems. g
Funny you should ask. Pristine put out a nice lesson on playing climactic reversals a couple of weeks ago in their Trading Lesson Of The Week for Sep 24. Just go to Pristine.com and follow the bread crumbs.
Wally, Be patient. Don't go in too soon. Use a limit order to catch volatile selloffs. No stops, except for very wide volatility based stops. Use a very large database and only take the extreme setups. Use a profit target to get a great win/loss ratio and accept that losers will occasionally be large. The large occasional DD makes this hard to trade for most people. You can cherry pick the trades (this assumes you have a system), but must take them all or use rational filtering methods. Very few people can trade this type of play because of the fear factor and DDs. g