You should never go against the trend. Contrarians can mathematically never make the profits that trendfollowers can make. The reason is that in a trend there is always a net over all move in one direction. And a contrarian can never make additional profits to neutralize that net move. Trading against the trend gives also much more fake signals or signals that reverse quickly and fast.
What generates your trading signals?
- Thread starter Howard
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You should never go against the trend. Contrarians can mathematically never make the profits that trendfollowers can make. The reason is that in a trend there is always a net over all move in one direction. And a contrarian can never make additional profits to neutralize that net move. Trading against the trend gives also much more fake signals or signals that reverse quickly and fast.
You would be far better off researching exit strategies and position sizing rather than entry signals.
Right, that thread is to do with exit strategies?
Just read it.
All succesful business models are about "buy cheap and sell expensive". But you only speak about the selling side. If the buying side would not matter the business model would be: "sell expensive".
But the problem is that if you are more expensive then the competition you will never sell. So you need to buy cheap as well.
Still trying to have a system handed to you Esfocus? I hope you get what you need without doing much work.
How do u know if something is cheap until after you have bought it? If the price falls after you bought, presumably it wasn't as cheap as you thought. If you sell something at a price because you thought it was expensive, and the price goes higher...presumably you didn't sell it as expensive as you thought.
Cheap and expensive don't mean anything in trading.
It does not mean anything to those who are ignorant. The aim of a trader is to know what he should know.
To know if something is cheap or not you need a system. That system tells you how probable it is that something is cheap or not. Probability you can have in foresight, certainty in hindsight.