I trade intraday counter trend strategies, but only in a channeling trend wide enough to allow for a qualifying risk:reward ratio.
i do. one of a few strategies i use. as nodoji said though, there has to be a big enough point differential to justify the risk. and for newbies, dealing with climax trades can be extremely risky.
What type of scanner do you guys use? I use trader alerts. I scan for 5minute WRB and extension away from 5m 20ma. I mainly look for volume tells in over bought stocks. Stocks with extended daily charts typically offer better R2R. Line today was an example of one my parabolic plays. Buy @ 2:40. Target: 40-60% retracement
i use trade-alerts as well, but i also have realtick's hottrend running so i'll see either of them. hottrend doesn't work anywhere near as well as tradealerts but sometimes can alert me to things i wouldn't pick up. i haven't had trade-alerts open the past couple months because i've had a bunch of positions on most of the time, but when i don't have as many good trades that i manually find, i'll fall back on trade-alerts. it's an awesome product. edit: also, i use some type of oscillator to spot an overbought/oversold stock, and then try and get in pieces; works on broker that charges per share, not per trade, and doesn't have to show all size of your trade.
I still believe that mean reversion methodology in general is the way to go. Of course, not a primitive and naïve one, but elaborate and smart. There are a lot of ways to set it up using synthetics as such that the fat tails do not blow it up. As a general approach I support it.
nodoj - was going to send you this as an email, but you can't receive msgs... a while ago, you and i discussed some al brooks stuff. finally saw his videos, wasn't knocked out by them....but really like bob volman's book. it's better written than brooks' book, and the nuggets aren't buried too deep. i'm still reading through it (got it from amazon a long time ago, and forgot i had it) but since it's geared towards forex, figured i'd let you know.