Professionals Fade

[dtmike]

I heard or read that the Pros fade the market to the newbies (like me). This has come up a number of times and got me thinking why not trade with the pros. I can't seem for the life of me to catch a trend and stick with it. Probably because as soon as I have a profit I will move my stop to breakeven or better very quickly. Maybe it's just my personality but since I've switched to fading the move I have had much more success. I trade the YM almost exclusively and just wanted to get some opinions as to this subject. If the pros do fade the market then do they use tight stops and small profit objectives? Or do they have a high percentage of winning trades but use larger stops than profit objective? This seems to work best for me.

 

[mitsubishi]

Quote from dtmike:

I heard or read that the Pros fade the market to the newbies (like me). This has come up a number of times and got me thinking why not trade with the pros. I can't seem for the life of me to catch a trend and stick with it. Probably because as soon as I have a profit I will move my stop to breakeven or better very quickly. Maybe it's just my personality but since I've switched to fading the move I have had much more success. I trade the YM almost exclusively and just wanted to get some opinions as to this subject. If the pros do fade the market then do they use tight stops and small profit objectives? Or do they have a high percentage of winning trades but use larger stops than profit objective? This seems to work best for me.

I would say that they have big targets-bigger payoff for the risk.I also think that they operate from a price zone and will average into a position over time rather than have a tight stop.After all,if you are confident about the next move,why would you not be able to tolerate some initial pain? And they do have deep pockets.
Follow your instinct as to what works for you,but bear in mind a reversal becomes a trend,and that a variety/combination of skills is required for long term success -at anything