14 replies to this topic

[greenie]

Countertrend is counterproductive - Isn't that funny and ironical, given that when you opened your BSC, QID et al, they were uptrending, and by definition, your trades were countertrend to start with ?

BTW, good trading on all those positions you mentioned. Credit where it is deserved.

Thanks NAV. All credits go to xD, whose blog was very helpful for me to learn few tricks.

QID was a bad trade. I opened it to be a hero and got my head handed . The rest were all stocks/sectors opened because they were not responding to the uptrend in the market.

By "countertrend is counterproductive", I wanted to mean the following. Let's say I have a big profit in BSC short, and now I want to catch a countertrend rally to make few extra points. When I do that, I often end up with (i) closing the short a bit early losing few points, (ii) turning short again a bit late losing few points there. So, whatever gain I may make on countertrend rally may not compensate for what I lose in my winning trade. A better way to play it would be to go long some other strong stock for rallies, and stay short weak one.

All IMHO BTW.

[ogm]

Out of half BSC for 3.5 points. Stops at new lows on the rest. Maybe not the longest term play, but in % terms, I'll take it.

[hiker]

FWIW, i took off the long BSC...in near 107 out near 115..let's see if 112 holds from here..a move above 115.51 could be real fun.

[OEXCHAOS]

So what you are saying bad new is good news....The chart is saying they can't get out fast enough.....

It's always a matter of figuring out if all the bad news is out and if all the "uneconomic" selling is done.

It usually happens on bad news. For a longer-term Bull, bad news IS good news. It's what creates the buying opportunities. In fact, my standing rule on P&G is to buy when they've really stepped in it. It doesn't happend that often, but bad news IS good news in that one.

Mark

[OEXCHAOS]

Countertrend is counterproductive - Isn't that funny and ironical, given that when you opened your BSC, QID et al, they were uptrending, and by definition, your trades were countertrend to start with ?

BTW, good trading on all those positions you mentioned. Credit where it is deserved.

Thanks NAV. All credits go to xD, whose blog was very helpful for me to learn few tricks.

QID was a bad trade. I opened it to be a hero and got my head handed . The rest were all stocks/sectors opened because they were not responding to the uptrend in the market.

By "countertrend is counterproductive", I wanted to mean the following. Let's say I have a big profit in BSC short, and now I want to catch a countertrend rally to make few extra points. When I do that, I often end up with (i) closing the short a bit early losing few points, (ii) turning short again a bit late losing few points there. So, whatever gain I may make on countertrend rally may not compensate for what I lose in my winning trade. A better way to play it would be to go long some other strong stock for rallies, and stay short weak one.

All IMHO BTW.

It sure looks to me like you're getting smarter, greenie. I hope you saw my apology for mis reading your SRS as a short S&P! The rest of those look like nice plays and the prospect of hedging with quality is a time honored bit of wisdom. Try to also make sure that what you are short is of lower investment quality, too.

My only avuncular advice would be to not get too emotionally invested in all those shorts. The bounce when and if it comes, may well turn into a big one if folks have over-estimated the scope of the debacle.

I've ridden more than one big short profit back to nearly break even in my life.

Mark