Why Do People Buy At A Top?

Real simple the greater fool theory look it up.

 

Around 3pm today that price zone allowed ample breakout airspace for a test of Tuesday's swing highs.

 

greed blinds people's eye, or their clear logic.

the risk goes higher andhigher when each rally goes higher

there is no party can last forever.

yesterday I made a killing on NQ, those hypes are just bubbles

the fed tried hard to blow the bubble, you will see you are the naked emperor with "new clothes" on

one day when FED told you the truth, you will feel annoyed how dummy you are

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I just laugh, when people chased Pozi scheme such as tulipa

I think the guy who deliberately buy NFLX at 398+ is an world class level moron, or the guy who buy NQ at 25.9

those are suckers, the worst losers in the planent

I like suckers, and I love the fact: 90% are suckers, buyhigh and sell low, or sell low and buy high

wow, hat off to those suckers!

 

I think we can easily go to 1800 on a santa claus rally.

Volatility has died down, its perfect! 2-5 point range days incoming!!!

 

If you want to play hot potato, good luck.

 

You have an entertaining case of outcome bias

http://en.wikipedia.org/wiki/Outcome_bias

You pick a couple of stocks that fell sharply off highs after the outcome is known and call anyone who bought there a moron.

I remember back in spring of 2009 I and several of my trading friends thought the people buying ridiculous new highs in NFLX and GMCR were tulip-crazed idiots. And while we were scraping pennies off the floor trying to short them, the idiots who bought those "tops" had 500%+ upside moves to enjoy.

I've said it before and will say it again, my three most profitable trades came from buying new 52-week highs as they were happening.

 

price action, best action. then volume, then breadth and sentiment.
i only buy and sell on significant convergences.

 

Where is the top?
So how can you buy it?
IMO first define yourself what trader you are…
as a scalper/day trader many time I buy what goes up more then what go down (unless I go short)
A HoD doesn’t mean that is the top… there could be much more to go up ….
Example: look at STXS on Thursday I got in at 5.30 (was at the top) , sold at 5.80… ecc
I did the same on Friday…. So IMO why not buy at the top?

 

keep fighting the trend and losing money.

 

I have at no point been short or lost money. I have not been long.. but by your logic this is probably losing money.