Nope. Not if its controlled within certain parameters. Clearly, uncontrolled will kill you.
What Does It Mean To Bet Against The Herd ???
- Thread starter Fundlord
- Start date
Nope. Not if its controlled within certain parameters. Clearly, uncontrolled will kill you.
betting against the herd works when the price make a big upside/downside move with momentum, consolidates for a while and then reaches another high/low with momentum after you have 100% believed that the high/low for the day has been put.. key is to be patient knowing that you only have a 10% chance to catch the near top/bottom...
no kidding, figure out what makes most sense, and what most experts are telling you, then just do the opposite
10% ? come on, you can do better ..
So what if price plummets before you had a chance to scale in?
Your properly positioned sized with only 25% of total size if you planned 4 entries to scale to 100% size or whatever, so its way better than going all in on some goofball inflection point or whatever. surf
Some very profitable traders investors who bet against the herd:
John Paulson on mortgages
Warren buffet American Express trade in the 70s, bac trade in 2011, Goldman trade in 2008, and a bunch of others
Paul Tudor jones short in 1987
David teppers 300percent return in 2009 by buying bank stocks
I would venture to say ALL ultra profitabe traders bet against the herd.