Thread: CounterTrend Trading

Who here thinks counter-trend trading is more likely to succeed and why?

Kal

Originally Posted by ;

it comes down to this: can you consistently predict the market or not, the rest is just details.

Predicting is gambling, after is a different story.

It is better to have the ability to predict, but it's harder.

Originally Posted by ;

It entails trading against the'longer term' trend (what ever you define that to be). This may lead to quicker profits because the counter-trend may be more explosive than the more obvious trend (for a range of technical and fundamental motives, i.e bias where one curency is profoundly short/long (leaving it drowsy ), panic selling, automatic orders being filled, choices etc). However, the drawback is that if the favorable move does not happen, you could be trapped, and there's a smaller chance that you can count on the longer term trend to bail you out afterwards.

So, it may says that will go long when everybody goes short????

Originally Posted by ;

Predicting is betting, after is a different story.

It's better to have the ability to predict, but it's harder.

Great point, perhaps'predict' wasnt the ideal word. Put it this way: I trade based on what I beleive (or'predict') how everyone else will interpret the market. To put it differently, I couldnt care less where I PERSONALLY predict the economy is going to go (if im right or wrong, it doesnt matter), what matters is where everybody else predicts the econmy is going to go. Then I trace that cash.

So I guess im'after' the market. If I wasnt after the market, all my trades are in the red.

Originally Posted by ;

So, it can says that will go long once everybody goes short????

Technically wrong: you move long AFTER everyones gone short (or vice versa). Not a fantastic idea to get it done at the same time unless your asking to get a margin call

Originally Posted by ;

technically incorrect: you go long AFTER everyones gone brief (or vice versa). Not a good idea to do it at precisely the same time unless your asking for a margin call

Hmm. . But I think u should have a massive account to perform that

Originally Posted by ;

Hmm.. But I think u should have a massive account to perform that

I wouldnt kno because I dont counter-trade

Originally Posted by ;

Hello all,

I just found this thread and decided to chime in. I trade tendency. Some could say it's dangerous but the fact is if everybody agreed there would not be a market, right? Price action only goes for so long then it's to reverse. Timing... well that's called mutiple orders. I climb and out of transactions. I could not imagine placing all my cash on 1'wager', regardless of what the trading design or market. It is much simpler when you scale in. Many times the trade goes my way with a small lot and the profits could have been improved. But that is a rule I've I adhere to it. Many times I've saved my butt because I had a small trade going against me and then afterwards put in another large order which price averages me and it's profitable.

Lots of practice also.

Thanks,
-Eco

Quite like what I do, except that I do not attempt to go against the trend in the first loion. Averaging down/up positions just like dollar price volatility stocks is a hugely important and not often discussed egy. I've basically devised my own system for trading forex using position averaging.

I exchange with the trend, but when it yells or if I am wrong then I can always average myself from it. Some people believe the exact same thing as martingale essentially since I am increasing my lots on a losing trade. Martingale is not liked by its . The best thing about the design is that it permits me to trade without s/l. The only time I touch s/l is if I am already in the dark on any given trade, not neccesarily my entire position. This is precisely what I mean with my signature deal with the trade, since I can control where my average standing price is by altering my commnt into a fashion.

Originally Posted by ;

Hmm.. However, I think u must have a massive account to perform this

I don't think so. I think you only need a good egy how to perform it. For instance, I like to play reversal trading using chart patterns, such as double top/bottom, 1-2-3 M upper / W underside and combine it with fundamental news, etc..

Originally Posted by ;

I don't think so. I think you only need a good egy how to do it. For instance, I like to play with reversal trading using chart patterns, such as double top/bottom, 1-2-3 M top / W underside and combine it with fundamental news, etc..

But I believe U can not contrary to the news when u try to make an entry right??