18-08-2021, 07:28 AM
(17-08-2021, 05:44 PM)sgbuffett Wrote: Some.of these trading Gurus will get people killed.
Example is this guy promoting trend-following trading.
All.is well in a long trending bull market but if you study markets closely a trending market is actually an exception.
The problem is not trendfollowing per se but the use of leverage to add more and more to a position as it goes up
Many of these traders use CFD to chase the trend.
However, it is not unusual to see "sudden drops" like in Nano and recently in some Hong Kong Tech. Many of these traders will be holding the most stocks at the peak by averaging up. When the stock crashes, the positions are at the biggest....and what they earn in last 6 months vaporise into losses within a day or 2.
Yr way of buying HK stocks adding on when stock goes higher it similar to his. When market good is good but when trend change, yr HK stocks are average up n badly hit now bro.