Its always the same. Never changes. Iv'e been in the markets forty damn years. There are always those who are dismayed that the market is not going the way they think it should based on the economy. They are the ones that buy into the efficient market hypothesis and other such nonsense. Eventually they learn, but it may take them years to catch on, that when the market is going down it does so in spite of what they think, and ditto when it goes up. The people in trouble are always the ones with an investors mentality trying to trade intraday or short term. Long term investing and short term trading are two entirely different animals.
Because they want to catch the top or bottom, make the max profit, and pat themselves on their psychological back for catching the CIT. It's good to have these people. They're the ones who fill my order.
Depends on your time frame. Market moves up and down each day. I have notice when some good traders come into the day bearish and some bullish that they both end up making money .
Surprisingly, too broad a statement coming from you (not putting you down)....Ammo is successful and generally a 1 way trader (counter trend), but he uses appropriate stops to get out of the way...so, basically, there is no way he is going to have his ass handed to him.....in the meantime... I trade counter trend on ES ,but without the same sophistication of Ammo,...I 'know'/understand where he is coming from but don't apply the same discipline....I used to do something very similar back in the 90's. Therefore I am always aware of the potential of getting a good kick in the ass...fortunately has not happened for quite awhile; not to say my nose didn't bleed a couple of times :eek: 'Counter trend' trading is profitable provided the trader has an adequate capital base and common sense allocation strategy...and above all , to know when they are wrong. NiN
The OP says "trade with the trend" then he says "buy on a pullback." Doesn't he realize that buying on a pullback is countertrend trading?
If you guys really think about it, every trade is a counter trend trade. Here: Bottom of trend "1" trader joe goes long. Trading against the last move down. Top of wave "2", trader joe sells and goes short, again trading against the last, most recent move up. Bottom of wave "3" Joe goes long again, and sells, and reverses his position at wave "4" near bouble top resistance.