When the street is selling I buy. When the street is buying I sell. What could be easier than buying the bottoms and selling the tops? Stops are getting hit on each subsequent bottom down there. What happens when stops get hit? Cha-Ching!
Hmmm! That was easy then... How you deal with panic and euphoria feeling to be contrarian from the Street? I guess you had been passed from that.
how do you avoid martingaling when you incorrectly pic a top or bottom? i'd post an example pic but i'm posting from my phone
To IronFist, this isn't a martingale strategy. I get X amount of triggers/contracts that I cannot exceed. If they don't work I stop out. To Palatine, I don't pick bottoms before Oil Inventory numbers are released so I didn't take that drop but I did take the one subsequent to that. I gave back a good portion of what I made earlier and then I turned around and went short and made that back. Picking exact bottoms will only work like this in the wee hours of the day because that's where the volatility is. Once a trend kicks in all bets are off. Can't emphasize the time of day enough. It's funny, every time I post something like this I get responses that say something to the effect of, you're gonna blow up. This doesn't work long-term, yadda, yadda. You guys really think I just buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy. Get a grip fellas. There's a big difference between being brave and being stupid.
doesnt calling top and bottoms works best in choppy days, but very bad in trend days like yesterday? did you turn a profit yesterday?
Those were my working orders that I was moving back and forth based on the price movement. The strategy here wasn't all that complicated. Just draw a diagonal line of support through the bottoms and you'll see where I'm buying. The exits are a bit tougher to explain but there's some resistance up there and I'm watching for the advance to slow down to get out. I pay super close attention to how price moves.
Great. Now if you actually have the courage of your convictions you will post a sceenshot of your trades today,right? Just trying to keep it honest here...
Yes it does. Best in chop, which is why I'm doing this right after the bell. Opening orders are placed for no rhyme or reason at the opening bell. You either want to get in or you want to get out and those orders push the market to quick extremes during the first 1/2 hour to hour. Once that period is over the strategy switches to picking bottoms when the price actually stops falling or wait for a bit of strength to come in. No way I can pick a bottom after that initial chop session. I had a good day yesteday but it was very difficult. I had to puke a few longs but then made the money back on the shorts.