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I have always been a counter trend trader and done just fine thank you.
Some of the best traders I know work the other side of the trend.
Charectorizing counter trend traders as "just not smart" is either not very
smart or a sign of inexperience.
Why, in a business where there are so many ways to skin the cat are we all
so convinced that our way is the only way or even the best way? Frankly
I've known traders to do quite well using astrology, Gann, Elliott and some
of the most god awful techniques that I have ever seen. BUT: They all had
two things in common, they were comfortable with their methods and they
practiced very strong risk and money management techniques.
>Why would you want to trade against the trend? I'm assuming you mean
>intraday trend, not daily trend. Trading against the daily trend is just
>not smart. The swings are smaller on the reverse than they are in the
>direction of the trend. The probabilities of a body in motion continuing in
>that directions are overwhelming. Profits are small trading against the
>trend while the risk of ruin goes through the roof.
>
Stewart Taylor
Taylor Fixed Income Outlook
Voice: 501-219-9774
Fax: 501-228-0963
E-Mail: staylor@xxxxxxx
Web Site: http://www.cei.net/~staylor/
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