trend trading requires much much bigger balls than countertrend

Discussion in 'Strategy Building' started by chewbacca, Dec 19, 2007.

  1. I think your premise is false on two counts. First, just because someone trades in the direction of a perceived trend does not mean that he will necessarily allow a trade to go against him any more so than a "countertrend" trader would. That is simply an assumption you made.

    And second, who is to say that an initial protective stop need necessarily be larger for a "trend" trade than for a "countertrend" trade? I think that trend identification and timing play a fairly pivotal role.

    Bottom line: one approach need not necessarily be looser than the other. Both participants can choose to play a tight game.
     
    #11     Dec 20, 2007
  2. it is good thing named diversification by sistem :)
     
    #12     Dec 21, 2007
  3. Good to see someone has a brain Thunderdog.
     
    #13     Dec 21, 2007
  4. how frequently do those running +$2000 turn into scratches or losses. how big how often the losses. the difference in pnl between all or nothing and banking all the times tgt +$2000? also with lower tgt +$1000-1500... all things to consider.
     
    #14     Dec 21, 2007
  5. That depends, if you're trading 200,000 share blocks, $2000 is just one tick. :) It's all relative.
     
    #15     Dec 21, 2007