This is my suggestion on how to make moeny. We know that most of the time we lose money by making rational decisions and end up losing. How about doing exactly opposite of that. Buy when you would sell, Sell when you would buy. That should make some good money.
May I then invite you to post your best rational decisions so that can take the opposite side and enjoy the profits? 2 or 3 would be find to start.
A good name for this would be the "Costanza Method" Jerry : Well here's your chance to try the opposite. Instead of tuna salad and being intimidated by women, chicken salad and going right up to them. George : Yeah, I should do the opposite, I should. Jerry : If every instinct you have is wrong, then the opposite would have to be right. George : Yes, I will do the opposite. I used to sit here and do nothing, and regret it for the rest of the day, so now I will do the opposite, and I will do something!
Congratulation on your 5th post! You registered back in 2004. The reason I mention this because I assume you have been lurking on and off. This idea has been discussed and if you do a search under my name and "evil plan" you should be able to find my fully worked out plan based on it.... P.S.: Here it is, actually been posted twice already: http://elitetrader.com/vb/showthread.php?s=&postid=1340742&highlight=evil+plan#post1340742
We could employ this method and find out if life is about fate or not. If we lose no matter what... it's fate!!
"Buy when you would sell" - when / where do you exit for a loss? when / where do you exit for a profit? "Sell when you would buy" - when / where do you exit for a loss? when / where do you exit for a profit? Even if you conveniently eliminate a few pesky things in the real world such as - eliminate bid/ask spread - eliminate commissions - eliminate slippage, reversing entry buys and sells by a losing trader will still lose money, not make money. Try to answer the 4 questions above for yourself, to understand why that is.