Millionaire Traders

The News Junkie

become so dollar bullish that mainstream media starts printing
cover stories about the strength of the currency, instead of buying
the greenback on the surrounding euphoria, contrarians will sell it
in anticipation of a market slump since they realize that sentiment
has likely reached its peak. This is exactly the way Roland Camp-
bell trades because, when everyone is bullish, he is looking for
opportunities in the other direction. One of the most dangerous
yet most tempting ways to trade is to jump into a market move
when everyone is talking about it. Oftentimes this is right before
the exhaustion occurs and the market begins to reverse because
everyone who wants to be in the position already is. Therefore, at
those points, fading the prevailing market movement may be far
smarter than joining it.

Go for the Meat of the Move

The most important technique when looking for a reversal is to look
for the price action to confirm your opinion before getting into the
trade. Market extensions can often reach further than most people
can imagine, especially faders. Therefore, arbitrarily picking a top
or bottom can be very frustrating as well was very unprofitable.
Roland’s focus on catching the meat of the move rather than trying
to pinpoint the exact beginning or the end of the move is the key
to his strategy. Having experienced the damage of top or bottom
picking with no clear price support, Roland now waits for news to
come out, let the market move in its direction, make sure it is not
a false move and only at that time, enter into the trade.

Average Your Entry and Trail Your Exit

With every trade, Roland averages in and averages out. Although
averaging down can be a mug’s game, the difference for Roland is
intent. He knows the average price that he wants before he even
places the trade. He also knows when to get out. If the price moves
against him and goes much further than four average downs, he
will usually abandon the trade. Not every one can get the trade
right 100 percent of the time. On the flipside, he tries to get as
much out of his winning trades as possible by averaging out. In