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It all depends on your position. In the equities markets, don't the specialists
play the opposite
side to the public's trades?
Also the smart money (insiders) are the ones who are supplying the public demands
in most cases all the way up. I know a lot of these kind of activities in our
stockmarket.
Many times we (as executing broker) were the only sellers (suppliers) in the
market for weeks.
We kind of control how far prices can go up each day.
On the other hand, when we do purchases for would be (or soon to be ) company
directors,
we are the only ones buying up (at a controlled pace)(and lots of smart rats
following our tail)
against the public selling to us for weeks too!!
So, if you really got a big inventory, when is the best chance to move your
merchandise?
(Imagine Bill Gates' point of view).
That's where you can really see the rich are diferent from you or me.
If you have no or not much inventory, you play the long side only of the trend
and the
opposite when you are so full to the bins..
So in conclusion, it depends on your position and the kind of markets you
trade.
Like Linda Raske used to say," If the ducks are quacking, you feed them!"
Stewart Taylor wrote:
> 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.
>
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