How to Avoid Getting Whipsawed in Chop?

Discussion in 'Risk Management' started by macattack, Dec 13, 2012.

  1. no kidding, all the money I ever made was by being on the right side of a trend, but if you keep averaging down on the wrong side of a trend you'll wish you had never been born.

    Fortunately, most of the time nothing ever trends, so it's nothing to be concerned about.

    But if you keep betting on it, you are going to be a severe victum of whipsaw.

    Eventually, that market will trend and make up for all your mistakes. But you should probably know how to handle yourself when it chops, which it does most of the time.
     
    #51     Dec 25, 2012
  2. Daring

    Daring

    Some traders may even choose to trade nothing but "chop" and stay out when it begins to trend.

    Food for thought or drunk in Xmas? :D
     
    #52     Dec 25, 2012
  3. just drunk and bullshitting, or what you call food for thought, but you talk about the trend and the chop like it is so easy to identify, when in most cases I don't know until after the fact. That's why I bet on the chop, and rely on the trend. The chop keeps me even, the trend makes me money. Getting on the wrong side of the trend and mistakenly thinkiing it is just more chop can be very expensive. Tryng to always get on the right side of a trend can drive you crazy and create whipsaw, since most of the time it just chops., So choose your poison.

    A lot of this market just goes on inside your head. It may be trending on the chart, but chopping in your own account.

    Avoiding the trend and only trading the chop is a young man's game. Eventually, I ran out of stamina.

    So that leaves you with just the simple problem, how not to get on the wrong side of a trend.
     
    #53     Dec 25, 2012
  4. Daring

    Daring

    It's fun to seem dumber than you are in ET.

    Merry Xmas.
     
    #54     Dec 25, 2012
  5. yeah well, you can't do it in real life, or you will lose your ass, I like having a place where I can pretend.
     
    #55     Dec 25, 2012
  6. you never know when you post enough bullshit when someone will reply with some useful information that is no longer applicable to them because they have moved on.

    And it just might be the thing to get you through the next tragedy

    I have found that people tend to wish you good luck, especially as to how it doesn't interfere with their own
     
    #56     Dec 25, 2012
  7. Daring

    Daring

    Same boat, no different.
     
    #57     Dec 25, 2012
  8. it's a dangerous game we are playing

    the people that write books tried it once and got burned, so now all they say is "don't do it."

    Like the man said, "It beats the heck out of working at Burger King."

    But you have to be a lot more careful than the average ET poster who thinks he has an "edge".
     
    #58     Dec 25, 2012
  9. Chop keeps you even: why then not replace the chop trades with doing nothing as the latter saves you commissions and time?
     
    #59     Dec 25, 2012
  10. just like the lottery, gotta be in to win, they don't ring a bell at the bottom, never know when it is going to start trending, most of the time I don't even know I'm in a trend, until it's all over
     
    #60     Dec 26, 2012