If I'd believed it by about the 20th time I was told that, I think I could've saved myself at least $50K. :eek:
Remember, kids, there's nothing to it: The trend is your friend until it ends. Yippee! Now everyone can be rich.
They did that the day before yesterday and got hit by the gap down yesterday, they then shorted the gap down yesterday, which was a bottom with further losses resulting from the gap-up today. That's 3 to 4% loss following the trend.
If you're swing trading the SIFs and you initiated a new long position the day before yesterday, and you only exit a position based on technical price action indicating a trend reversal, you wouldn't have gotten hit by anything because two key support levels remained intact yesterday: The 20-day moving average and the 2/24 breakout containment bar low (that day's range "contained" the next 3 days' price action). If you're swing trading the SIFs and you're a counter-trend trader who shorted yesterday's opening gap down, and you let a 10 point (or more) gain turn into a loss following the failed break of the 2/27 low, that's poor risk management. As I was asked last week in a chat room: Who is "they"?