After spending time in around trading forums for awhile I began to notice something kind of funny: everyone thought everyone else was a liar.
If someone came out and said: I like trading pullbacks, someone else would come out and say: Pullbacks don’t work. Only breakouts work. Yet another person would come out and say: Nothing works. Trading is rigged!
I think this is funny because who am I to say what does and what doesn’t work for someone else? One wise trader said it’s akin to me liking steak and saying that all other foods are “wrong”. How funny is that?
My favorite style of trading is breakouts. Breakouts on momentum stocks. High or low priced, doesn’t matter to me. A 20% gain is still a 20% gain whether it happens from $100 to $120 or from $1 to $1.20. All I care about is movement.
Is my style of trading wrong? To some it is. For awhile I was trading nothing but low priced stocks, and I was doing well. And while I was doing well I can’t tell you the number of traders who told me that trading low priced stocks was “wrong”.
How funny is that? Something was working for me and I was being told it wasn’t working by someone who wasn’t even trading that way. Amazing. I suppose there’s a lesson into human nature there somewhere.
So what style of trading do you like best? Not what someone else says you should like — but what works best for you? Scalping? long term? Fading breakouts? Breakouts? Whatever the style is, really take the time to master it and forget the haters once and for all.