THE CONTRARIAN SYSTEM called "PRO-er NOOB"

[supermum]

This is how I trade, and it has been slightly profitable.

About 5% gains a month, which is not too bad, little drawdowns.

STEPS:
-find out the HOT stocks (i.e AA, BAC, SNDK, MGM, X, INTC, FCX, CLF, CAT, AAPL, and many more)
-read the NEWS first
-Find out the sentiment that the "Pros" (i.e Analysts, Popular Stock Reporter --- from blogs, CNBC)
-Determine the trend that the PROS say. IF LONG, always go LONG. IF SHORT always go SHORT.

The MOST IMPORTANT STEP

-Read the forums, YAHOO forums, TRADEMUMS and hopefully more if there are.
-Find out the bulk of RETAIL a.k.a "NOOBS" sentiment. IF they are SHORT, while the PROS are LONG, follow the PROS, and go against the NOOBS! VICE VERSA, u know what I mean.

This method always go against the "NOOBS"
However, if the NOOBS say LONG, and PROS also say LONG. DO NOT ENTER THE TRADE! Wait till the NOOBS say SHORT, then go LONG!

Simple. Works Brilliantly.

WHY THIS WORKS?

This is Behavioral Finance and Economics. FEAR creates opportunities, GREED creates massive LOSSES! The NOOBS are always GREEDY and thus they lose money, then they FEAR, and we the "PRO-er NOOBS" will take advantage of this and make money!

Will show you examples soon.

[n151]

I love your system if it really does work.

Please post some examples!

[tradedragon]

This system works best in a volatile market, however, in a trending market, I think you may incur lots of loser trades.

We need to think how to make it work in a trending market too. Correct me if i am wrong.

But this is indeed a unique system. thanks for sharing it with us.