LOL Beach how I as a trader position for existing TREND,in order to PROFIT MOST
Do I scale in at 10%,25% 50%...or do I go all in at once to 100 % ?
Every trader has his or her own way/method of risking their own capital in the market.
My own trading method which I will reveal here for the first time,is to progressively
ACCUMULATE AGAINST TREND at KEY BREAKOUT/BREAKDOWN points Short/Intermediate Term,
so that when the PRIMARY LONG TERM BREAK OF EXISTING TREND TREND OCCURS,
I AM 100% FULLY INVESTED IN THE BREAKOUT OF THE NEW TREND
so I can capture FULLY THE PROFIT POTENTIAL of the Upside/Downside Break Completely.
Did you get that ?
If I believe that the existing TREND is SOON or ABOUT to REVERSE
then I begin to position and ACCUMULATE AGAINST TREND,
which is the exact opposite of a trend following system
As an example, I began accumulating position in
SQQQ Pro Shares 3 X Short Nasdaq 100 ,
when the NDX 100 was actually between 7400-7700 price peak
this past fall in October and November, almost 1500 points ago.
When the Nasdaq 100 Primary Break of Major Trend occured in December,
I was loaded 90 % in SQQQ inverse .
Counter Trend trading method has the huge advantage
is that you are able to buy into a LONG or SHORT POSITION at bargain basement prices.
Who wants to pay Tiffany prices,thousands of dollars more... when you can go to Amazon instead,
TRADING is the EXACT Opposite of TREND following for me.
so It is important that you KNOW what TREND is at ALL TIMES,
to COUNTER POSITION ACCUMULATE AGAINST IT.
That is the secret I am revealing here for the first time.
If you look at the Nasdaq 100 Chart included here,
you can see the break of the Triangle that followed
That is where I was 90 % Short the NDX with SQQQ
Next, I have circled the area on the chart that has followed.
Now if I believed that the Nasdaq 100 was building
a base for rally back to the breakdown point of the Triangle
I would be accumulating shares right now in TQQQ , Pro Shares 3 X BULL Nasdaq 100
Problem is I don't believe that the Nasdaq 100 is headed back up there anytime soon.
I believe the Nasdaq 100 is heading south, probably soon for a re-test of 5900
So I am in a wait and see mode at the moment,
hoping for an additional rally
so I can begin to accumulate SQQQ again,
for another big decline this time thru 5900 Support.
COUNTER TREND ACCUMULATION METHOD Of TRADING,
is something I have been doing for a very long time.
But in the face of some sharp pointed criticism from a very angry,yet bright and astute young trader this past week,
I have decided to reveal my own hand here for the first time.
In order to practice this method of trading, you must know the market you are trading like the back of your hand.
I AM NOT a believer in Diversification.
I AM a believer in .... Concentration
You must have very strong belief in YOURSELF to practice this method of trading.
and you must tune everything else OUT !
When the BREAK of TREND OCCURS using my trading method described here,
it will surely bring you financial rewards that you only dreamed were possible before.
Disclosure: The above information describes my own proprietary trading methods.
it is not meant for most traders. Please use self discretion.
I wonder how can that be reconciled with your other idea (https://www.tradingview.com/chart/SPX/D67gb0Mg-Professionals-ALWAYS-Follow-TREND-Amateurs-Try-To-Pick-Bottoms/), in which you wrote
"...professional traders ALWAYS FOLLOW TREND, AMATEURS ... counter trade against TREND. Be a professional. And trade like a professional."
So, consequently, you "revealed for the first time" that you was trading like an amateur, didn't you?
The point that I was making to traders who may be starting out and may not want to suffer large draw down against bank,
is to professionally trade with trend. Trying to pick top or bottoms more often then not fails over time.. So trading with trend is professionally recommended
I have a small part of a retirement account, 10 % that I use for sheer speculation, against the other 90% which is invested in extremely conservative high yield for income.
My revelation of my trading method, something Ive developed over many years was an honest attempt to show that in trading 3 X ETF's, one has to buy against trend with these vehicles ,because of their rapid price escalation once trend breaks the other way.
Bottom line Really me. 90 % of the time, trend following long term investing strategies work in the stock market. And that is why professionals use that strategy ever day.
That's why I personally never pyramid on the way down, only on the way up.
This way you bet big only when you win, and when you lose, you only lose a small exploratory bet. Once the real move starts, and the big trend really starts to kick in you can make the large profits extremely quickly and easily.
Then accumulate very small positions, at different times/ different prices.
You realize you can buy just 1 share.
That should help you.
I was loaded 90 % in SQQQ inverse ETF ."
Accumulating a triple leveraged ETF takes a lot of money. I am assuming that you are referring to 90% of a portion of your trading capital.
If not, an upside miss of 10% forces to get out or go broke. That's math.
Which is it?