Why u should avoid trading contra

because

- U r not a pro yet (if u r, this article is not for u). u don’t probably know as yet how when and how much to trade contra. U probably are like abhimanyu who knows how to enter the chakravyuh but doesn’t know how to come out.

- Operators time the fall in up trend and rise in down trend very cleverly. Their sole purpose is to create panic, fan greed or fear, disturb the weak minded herd so that they either book out or get trapped or get in the wrong direction. U are likely to get the timing wrong, if not terribly. 

- risk reward ratio is simply not in the favour of against-the-trend trades. 80% of the money during uptrends are to be made in up moves (and vice versa). Only 20% is in the contra corrections/pullbacks, which by their sheer nature are meant to be honey-traps. Corrections or pull backs in trends are actually meant to prolong the trend for the operators and make the runs juicier for them.

- Even if u get the timing right as a matter of chance, u r likely to be full of fear of getting trapped by sudden turn of tide in the direction of the trend (if u don’t fear, u r either a pro or nuts). This anxiety is likely to underdo it. The stress will be quite high and not worth it.

- The very fact that u r unable to identify, catch and ride the trend proves it that it is ten times more unlikely that u won’t be able to spot, catch and ride the pullbacks/corrections! Don’t fake it that u know by trying to be a don Quixote to gain browny points for ur ego. Focus on money, honey. If u r unable to pick the dollars when clearly possible, what do i say about ur dare-devilry to steal the pennies when the hunters are out!

- Corrections and pullbacks are not meant to be traded, they are meant to accumulate/distribute and manipulate. 

- the tragic part is, what many upcoming traders get trapped in by thinking as corrections/pullbacks are just volatility designed precisely to do this very thing - trap the desperate! even theorectically, there is contra trade in real pullbacks/corrections and not in volatility which falsely promises to be the real thing.

- as confirmed by elliot wave theory, pullbacks/corrections are one third the extent/duration and three times faster. 

Ability to spot the trend is the no. 1 requisition (if not the only one) in becoming a successful, rich trader.