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Re: BlackThought post# 412311

Friday, 05/27/2011 12:57:46 PM

Friday, May 27, 2011 12:57:46 PM

Post# of 704570
the mistake most traders make is betting against a trend. Shorting or buying a put against a interday pop is different. When a stock is just trending up and one thinks it's gone to far...just wait. Wait till the trend breaks then buy the short or put. You can then also add to that short/put position if the correction trend becomes the new trend. If traders want to make a small lotto bet against a upward trend...that's up to them...but never average down on a lotto bet.

I've play'd SPY that way for a couple of years now and have made profit 80% of the time... 10% breakeven and 10% loss (usually when something comes out of the blue and blindsides me interaday).

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