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Bulls: She Is Rolling Down Since Yesterday: Why Are You Still In?
- Thread starter riskfreetrading
- Start date
Quote from riskfreetrading:
I am always amazed to see people buying when market is rolling down.
It sounds like you believe that once the market starts "rolling down", it would continue to do so. This idea may have been valid around 40 years ago, but not anymore. From all the extensive testing that I've done, you are more likely to profit trading against the trend than with the trend. With that in mind, what is really amazing is to see people selling when the market is rolling down. That is, I am just as amazed as you are, but for the exactly opposite reason. It's very ironic, isn't it?
Watch the camp of bulls starting to reduce, and providing all sort of explanations for the down leg. 20 minutes of market tick (we are down since I started the thread 20 minutes ago) can make a lot of impact on people's mind. The topic of this thread seemed strange just 20 minutes ago!
Quote from nonlinear5:
It sounds like you believe that once the market starts "rolling down", it would continue to do so. This idea may have been valid around 40 years ago, but not anymore. From all the extensive testing that I've done, you are more likely to profit trading against the trend than with the trend. With that in mind, what is really amazing is to see people selling when the market is rolling down. That is, I am just as amazed as you are, but for the exactly opposite reason. It's very ironic, isn't it?
Have you considered what happened to your thinking of we are at the started of a new one to two weeks down leg? You seem to assume that we are in a up trend. That may be true, but it needs at least a pullback. Once you have the pullback, what tells you that it cannot turn to a more than a pullback. So, the key to all this is to back on pullbacks only, and to short on up bounce. Doing so can help you avoid losses, and catch big moves.
I got out last Friday from the long side. Shorted some, and shorted more yesterday when the market was green. I am now very well positive on the short side. If this leg continues down, I will make more money. If there still is a bull case when blood has been spilled, then I will go up with the bulls. I have no allegiance to any side.
Quote from riskfreetrading:
So, the key to all this is to back on pullbacks only
I assume you wanted to say "So, the key to all this is to buy on pullbacks only". I have no problem with that. But then again, you answered your own question in the first post of this thread: you see buying on the way down because many traders see it as a pullback from the continuing uptrend.
Dow is down a whole 30 points
this sell off is so painful
this sell off is so painful
first
All of this is a time frame dependent
one looks at last two years, another at last two weeks next looks at last two days some look at last two hours and somebody looks at the last two minutes.
second
Market. What is being traded. Some stocks are down 40-50% when S&P is down only 7% and other stocks are up 40-50%.
third
Trade management, sometimes I have perfect entries with poor exits and another time I have poor entries with perfect exits.
There are so many variables to market that it is useless to make any statements and people that start threads like this one have never made any trade.
for instance if and it's a big IF market will gap up tomorrow you'll see same person saying something like this: "I bought some yesterday and added more this morning."
I also suspect that a lot of recent posters are either sponsored by Baron or it is the man himself.
All of this is a time frame dependent
one looks at last two years, another at last two weeks next looks at last two days some look at last two hours and somebody looks at the last two minutes.
second
Market. What is being traded. Some stocks are down 40-50% when S&P is down only 7% and other stocks are up 40-50%.
third
Trade management, sometimes I have perfect entries with poor exits and another time I have poor entries with perfect exits.
There are so many variables to market that it is useless to make any statements and people that start threads like this one have never made any trade.
for instance if and it's a big IF market will gap up tomorrow you'll see same person saying something like this: "I bought some yesterday and added more this morning."
I also suspect that a lot of recent posters are either sponsored by Baron or it is the man himself.
Quote from stock_trad3r:
Dow is down a whole 30 points
this sell off is so painful
A sword that enter a man's belly starts with just small bleeding, then a lot of bleeding is seen when the sword comes out from his back. At that moment everyone knows that there has been a lot of damage/blood/etc. When the sword is out, the man is about to fall if he is not dead already. Make sure that you are not that man.