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

whipsaw usually occurs right after the mkt has trended sharply both ways. Trader figures all I gotta do is put on a long strangle. Buy stop to enter above and sell stop to enter below. It worked fabulously well the last month I have been flat just trading in my paper account. At the end of the day many many stops have been hit but no biggies. Chopped to death on a very quiet day.
 
kmiklas said:
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 =)
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There are probably several terms for this phenomenon. I call it "chasing."
 
Steve Alexander said:
There are probably several terms for this phenomenon. I call it "chasing."
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chasing is when you enter a limit below the mkt. It moves up you cancel and replace with a higher limit. All day long. You never get filled. If you had just entered a mkt order instead of a limit the first time you would be in rather than chasing.
 
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