To surf the waves requires speed, skill, cunning, and a great sense of timing. The only way it works for me currently is if I sit with my finger on the trigger, and continue to follow the current pace of the index. Whenever it gets "too big for its britches" I reprimand it with another short. The result is that as it rises, I am continuously near the peak. I say the pace is extremely important, because if you are too trigger happy, you will run out of your funds very quickly. You have to feel what it is doing and play it like a video game.
Obviously as soon as it falls into your territory, you get out. No sitting there "letting your profits run", take a small win and have no remorse.
Yes, this is probably the riskiest strategy ever dreamed up, and more experienced traders would laugh at this even being called a "strategy". I expect to look back on this and have a good chuckle myself one day.
But for now, I am enjoying myself, and like I have stated before, I have my own risk management in place, which is to play with just a tiny portion of my capital. A very tiny portion.
Please, if you are new to trading, don't take this "advice" or attempt to follow this strategy. What I am doing is certain to create an enormous loss. It is working for me, simply because I have invested hundreds of hours (if not thousands) observing price action. I use a large number of technical indicators to influence my "surfing" decisions, Double Tops, Head and Shoulders, and Pin Bars to name a few.
What I like about this method is that I have am enormous amount of control and input to provide on my trade as it progresses. And I don't have to be "right", at least not at first. Also it frees me up to be able to confidently enter a position anywhere on the chart, as long as it is small enough. I don't have to be on the sidelines waiting for my indicators to line up and the stars to align as well.
