Being A Contrarian While Trading Is For The Birds
One of the buzz-phrases circulating in the trading world is that the federal government has “propped up” the stock market.
This artificial support, some will argue, is doomed to fall like a house of cards as the market drops.
For those following the Simpler Trading team, you’ll quickly learn that such contrarian views should be rebuffed.
Take for example a report this week showing how all the shorts against TSLA have lost upwards of $8 billion to date. TSLA doesn’t pay attention to contrarians, and neither should you.
Arguing against the market’s momentum is an exercise in futility.
Ultimately, does it matter if the market is “propped up” or a specific stock follows its own path?
The key is to “get in while the getting’s good” and know how to get out when needed. Learn to adjust to a change, i.e. if the house of cards falls or the hot stock reverses.
When you believe you’ve got a trade that’s working and you can manage your own risk, that’s what you do.
Let someone else fly off being a contrarian.
We Saw: Markets spiked early before rolling back to flat —
- Gains locked in as AMZN jumped higher
- Some may not like the overall rally, but that’s what’s working
- Wide variety of stocks hit records on the day
We’re Watching: market indicators that defy popular opinion —
- If the market keeps running one way, get some of the run
- Wondering why people keep shorting TSLA for a loss
- Multiple squeezes in BYND?
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