What is the jargon for this trading style/mistake called?

[kmiklas]

Heya Peeps,

What's it called when someone keeps reversing their position, to try and catch a rise or a fall, only to miss as the price reverses against them.

Example: ABC is trading at $10.00, and ticks up to $10.01. Our star trader, "Flipper," goes long, thinking that this is the start of a big upmove. Unfortunately, the price drops to $9.94. Flipper takes the loss, reverses his position, and goes short. trying to catch the downmove. Sadly, the price jumps back up to $10.03. Flipper then reverses again... you get the idea.

Thx, Keith =)

 

[qxr1011]

Heya Peeps,

What's it called when someone keeps reversing their position, to try and catch a rise or a fall, only to miss as the price reverses against them.

Example: ABC is trading at $10.00, and ticks up to $10.01. Our star trader, "Flipper," goes long, thinking that this is the start of a big upmove. Unfortunately, the price drops to $9.94. Flipper takes the loss, reverses his position, and goes short. trying to catch the downmove. Sadly, the price jumps back up to $10.03. Flipper then reverses again... you get the idea.

Thx, Keith =)

it is too early to call it a mistake

now it depends where flipper will put his stop

 

[globalarbtrader]

Heya Peeps,

What's it called when someone keeps reversing their position, to try and catch a rise or a fall, only to miss as the price reverses against them.

Example: ABC is trading at $10.00, and ticks up to $10.01. Our star trader, "Flipper," goes long, thinking that this is the start of a big upmove. Unfortunately, the price drops to $9.94. Flipper takes the loss, reverses his position, and goes short. trying to catch the downmove. Sadly, the price jumps back up to $10.03. Flipper then reverses again... you get the idea.

Thx, Keith =)

Being whipsawed.

GAT

 

[just_numbers2014]

Perhaps, "getting whipsawed"?

 

[qxr1011]

it is too early to call it a mistake

now it depends where flipper will put his stop

In order to get into the trend trader must pay !

And the loses that you described are the payment.

Eventually he will get into the trend, but the payment may be too high...

Or he will discover that there is no trend in the intervals he is working, instead the price is in the range and he has to adjust his trading accordingly.

But for that discovery he also has to pay...

Most of the loses of the trader with a method are a form of payment for the future profits.

With the bad method one pays too much, with the good method one pays just enough.

But everybody pays...

 

[Martinghoul]

"Getting chopped"

 

[kmiklas]

Thx everyone

 

[nonlinear5]

I believe the correct term for this is "chasing the market". Getting "whipsawed/chopped" is the consequence.

 

[NoBias]

Clueless

 

[Handle123]

Baby Porcupine