Why does ET countertrend powerful trends so much ?

Quote from No.Heat:

I did not want to trash any threads or journals so decided to start my own and just comment here.

Without insulting or being condescending I just cannot fathom this impulse of people refusing to trade in such a simplistic profitable way.

Listen people, it's very simple.

If the trend is strong, you don't counter trend it period.

It's hard to find powerful trends in ridiculous charts, you know the kind, so use charts that matter.

Once you find these strong trends, simple structured channel is enough.

Don't go shorting uptrends, dont go buying downtrends.

It's that simple.

If it's going up, look to buy, and not at the highs please, wait for weakness.

And the reverse for shorting.

Quite simple geez, please stop doing the alternative, it's a losing proposition unless you cheat with money management, which will eventually bite you in the ass, you know the kind...

No Heat
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Its always the same. Never changes. Iv'e been in the markets forty damn years. There are always those who are dismayed that the market is not going the way they think it should based on the economy. They are the ones that buy into the efficient market hypothesis and other such nonsense. Eventually they learn, but it may take them years to catch on, that when the market is going down it does so in spite of what they think, and ditto when it goes up.

The people in trouble are always the ones with an investors mentality trying to trade intraday or short term.

Long term investing and short term trading are two entirely different animals.
 
Quote from Marcell:

few months ago I stumbled across an ebook that I found very insightful as rookie. I still have it on my HD. from the very beginning it urges how to trade WITH the trend. perhaps worth a quick read.
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Interesting read on the basics.
 
Because they want to catch the top or bottom, make the max profit, and pat themselves on their psychological back for catching the CIT. It's good to have these people. They're the ones who fill my order.
 
Quote from No.Heat:

Find the strong trend, grab a nice chunk, then move to new ones.

Sit on the trend too long and what you described could happen.

Don't get greedy, grab your piece of the pie and jet.
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Agreed!

Why do people here counter trend trade? They've not had their asses handed to them. Yet...
 
Depends on your time frame. Market moves up and down each day. I have notice when some good traders come into the day bearish and some bullish that they both end up making money .
 
Quote from LEAPup:

Agreed!

Why do people here counter trend trade? They've not had their asses handed to them. Yet...
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Surprisingly, too broad a statement coming from you (not putting you down)....Ammo is successful and generally a 1 way trader (counter trend), but he uses appropriate stops to get out of the way...so, basically, there is no way he is going to have his ass handed to him.....in the meantime...

I trade counter trend on ES ,but without the same sophistication of Ammo,...I 'know'/understand where he is coming from but don't apply the same discipline....I used to do something very similar back in the 90's.

Therefore I am always aware of the potential of getting a good kick in the ass...fortunately has not happened for quite awhile; not to say my nose didn't bleed a couple of times:D :eek:

'Counter trend' trading is profitable provided the trader has an adequate capital base and common sense allocation strategy...and above all , to know when they are wrong.


NiN
 
Quote from billyjoerob:

The OP says "trade with the trend" then he says "buy on a pullback." Doesn't he realize that buying on a pullback is countertrend trading?
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Only if you buy a pullback that broke the trend line in your time frame.
 
If you guys really think about it, every trade is a counter trend trade.

Here:

Bottom of trend "1" trader joe goes long. Trading against the last move down.

Top of wave "2", trader joe sells and goes short, again trading against the last, most recent move up.

Bottom of wave "3" Joe goes long again, and sells, and reverses his position at wave "4" near bouble top resistance.
 

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