It is probably better to buy the first new 52 week high rather than the last new 52 week high. The first one always looks excelllent on a chart. The last one doesnt look as good but three years later you can be sitting pretty.
That's quite the opposite El Cubano. If you buy at the top (or what you believe is the top) your risk is limited because the stock (or the financial instrument you are trading) can only go to zero. On the other hand, if you sell at the "bottom" (or what you believe is the bottom) you risk is now unlimited!
You're assuming he's using the word SELL to mean entering a short trade rather than the standard meaning of exiting a long trade. Retail forex has corrupted the language of trading.
Looks like we've been in an uptrend for a long time now: http://stockcharts.com/freecharts/historical/spx1960.html
Yes. But buy every new 52 week highs on the major US indexes (S&P 500, Dow, Nasdaq, Russelll, etc...). since 1972 and see what happens.
Stock runs from 10 to 30 and then back to 10. 30 was the top, you will laugh at the people buying at 30. Buf if the same stock runs from 10 to 100 and then back to 10. Anyone buying at 30 and selling at 90 will look like a genius. Hindsight bias.
psychological like everything else in the market. those that make money doing it are probably breakout traders that have a system when to take profits. trading is not about taking a shot or throwing darts.