Is trading like coaching football?

Discussion in 'Trading' started by rtr1129, Sep 27, 2011.

  1. rtr1129


    In American football, the correct strategy depends on what the status quo is, and what kind of offense and defense your opponents are using. One day decades ago some coach invented the option offense, and they crushed their opponents because the defenses were not built to stop it and they did not have the proper defensive strategy to stop it. Then everyone started running the option, and everyone figured out how to stop it. Same goes today, where everyone outside of the pros run the spread offense. For a few years the early adopters were crushing everyone. Now everyone runs the spread and teams are able to stop it. In general, a successful strategy in football is a contrarian strategy. When all of your opponents put small fast guys on their defense to stop the spread, it makes no sense to run the spread. It makes perfect sense to get some big strong guys and plod along slow and steady, making small consistent gains against the small speedy defense.

    Is the general winning formula the same for trading? Keep up with the latest trends and stay ahead of the herd by being an early adopter of a strategy that exploits the herd?