Totally Disagree with this guy !

[phoenix25140]

Just saw a quote on here with someone asking how you make money in trading,

" You buy when the market is going up and you sell when in its going down"

Who agrees with this ? Does it depend how you see trading ?

I see trading as resistance, you wait the low point and buy in, or you wait for the high point and sell. Im not a day trader btw.

Anyone see trading this way ??

 

[golfnut.1]

Just saw a quote on here with someone asking how you make money in trading,

" You buy when the market is going up and you sell when in its going down"

Who agrees with this ? Does it depend how you see trading ?

I see trading as resistance, you wait the low point and buy in, or you wait for the high point and sell. Im not a day trader btw.

Anyone see trading this way ??

Employing a stop-loss technically becomes "selling as the price declines".
Purchasing upon confirmation of an up trend becomes "buying when the market goes up"
Your theory of buying at the bottom and selling at the top is very dangerous. You will find yourself on the wrong side of the market more often than not.
Good luck!

 

[Dommo]

You totally disagree with this guy

"You buy when the market is going up and you sell when in its going down"

but you say

...you wait the low point and buy in, or you wait for the high point and sell.

I may have missed some subtlely, but what is the difference? Both are truisms containing no information.

Or is this a late night wind up?

 

[alpe80]

You totally disagree with this guy



but you say



I may have missed some subtlely, but what is the difference? Both are truisms containing no information.

Or is this a late night wind up?

What phoenix mean is he buy at the low and sell at the high....while the other guy buy at the high and sell at the low...

 

[Splitlink]

The trick is to know is to know "where or when". Hindsight is no help.

 

[glyder]

none of it matters if you are following you plan why does it matter what his plan is or what he thinks?
There are always different views, its what makes the market.

 

[the hare]

Anyone see trading this way ??

Thankfully I do now, although it took a fews years longer than it should have done to sink into my dim witted head

 

[phoenix25140]

hmm , obviously im new to trading but if say your trading oil on a daily basis then your looking for peaks in price and then making money selling when it hits that resistance level. ? is this not how most people trade ?

I thought a method like this would eliminate more risk as the price is already very high or very low. The price increasing further is less likely, once the price has peaked the odds say it will fall, especially looking at oil and forex charts.

 

[daliokio]

You buy low and sell high, its obvious but not easy to do. You are actually wired to sell when market falls and buy when it is rising. I have lost most of my money this way.

 

[MarketMoverTrader]

It's both isn't it? The way I trade I have 2 strategies - either going with the flow (buying on the way up, for example, but before most of the movement occours), or doing a contrarian trade, where I buy or sell according when I reckon the market is about to turn.

 

[glyder]

phoenix, That works for some, but not if you are trading breakouts.
I tihnk there are a good number of trader who like to buy new highs
to try to profit from a new dynamic entering the market.

 

[JRP2891]

There are two types of traders looking to buy new highs and sell new lows; the experienced and the novice.

 

[meanreversion]

There are two types of traders looking to buy new highs and sell new lows; the experienced and the novice.

Very cryptic - care to expound on this?

 

[anley]

Theres' nothing wrong with buying/shorting momentum, billions have been made doing it and it will continue to work. But you need to know what you're doing and have very good filters in place, plus probably be willing to accept large drawdowns.

But the safer, more reliable money is normally made by buying dips in established uptrends and vice-versa. That's where I'd advise someone starting out to concentrate on.

 

[mb325]

Just saw a quote on here with someone asking how you make money in trading,

" You buy when the market is going up and you sell when in its going down"

Who agrees with this ? Does it depend how you see trading ?

Phoenix, what are your thoughts on trends? Do you 'believe' in trends? How is a trend constructed? What makes price make a high, pull back, then make a new high etc.?

 

[phoenix25140]

I strongly believe in trends, but I have alot to learn, i look for spikes in the price then trade on the way down, there have been times where my stop loss has got me out of the trade because i entered too early, the price rose more and cancelled me out , maybe I need to wait for the market to start falling before i enter it, hence sell when the market is selling

 

[daliokio]

If the high is a better than previous high and on good volume then it is likely to be a new leg up and so buying in with a tightish stop would be a good bet. The reverse for new lows. i find fibbonacci and the RSI good tools to indicate highs and lows on all timeframes.

 

[JRP2891]

Very cryptic - care to expound on this?

Sure. Both the novice and the experienced trader will be buying highs for very different reasons. The novice is usually buying because he's missed the move up to the high, trades off emotions, loses a couple times on minor retracements, gets more emotional and then throws in the towel. And even if he manages to stay in he takes a fraction of what the market was willing to give him. The experienced trader views new highs as potential tipping points and is playing for position, and he's also considerably more resilient to losses at these levels than the novice.

 

[meanreversion]

Sure. Both the novice and the experienced trader will be buying highs for very different reasons. The novice is usually buying because he's missed the move up to the high, trades off emotions, loses a couple times on minor retracements, gets more emotional and then throws in the towel. And even if he manages to stay in he takes a fraction of what the market was willing to give him. The experienced trader views new highs as potential tipping points and is playing for position, and he's also considerably more resilient to losses at these levels than the novice.

Ah I see. It's still pretty cryptic, although not quite Cantona-esque.