SOURCE FOR EVERYTHING IN THIS POST IS FROM https://www.spytrader.net/
https://www.spytrader.net/single-post/2017/04/02/A-Generation-Of-Buy-The-Dip-Traders
A Generation Of Buy The Dip Traders
April 2, 2017 | SPYTRADER
A Generation Of Buy The Dip Traders
I have a few questions for all of you. How many of you started trading in the last 8 years? How many of you have never traded in a bear market? How many of you have never shorted a stock? How many of you are not really traders at all, you just buy the dip?
For those of you who started trading in the last 8 years, and think this bull market will last forever. I want you to really think about what I am going to tell you. At some point all bull markets end, and it can whip out everything you have made over the last 8 years in a very short amount of time.
If we entered a bear market next week how many of you would lose money, because you continue to buy the dip thinking the market will come back? In a bear market it does not come back for years. Now here come the margin calls how are you going to cover them? Send more money? Bad Idea, don't do it. Just sell the stock.
How many of you have never shorted a stock? Well if you started trading in the last 8 years you would not really have had a reason to, you buy and it goes up. Would you all agree, a good trader should be able to short stock in a bull market and still be able to make money? How many of you could do this?
I only bring this up because I know a lot of you have made good money over the last 8 years, and I don't want you to lose it. Please take the time to test your skills at trading both sides of the market. Start by paper trading. Not only will you be able to trade bear markets, but you will increase your profits trading any type market.
In the last 15 months the SPY is up 15.89% , I wanted to see how SPYTRADER preformed over that time by only selling SPY short, so I went back through all the SPYTRADER trades on the SPY. Here are the results. SPYTRADER sold short on 37 trades with a 72.97% accuracy and made 24.79%. You can view this on our Trade History Page.
So I ask you are you one of the traders that make up the generation of buy the dip traders or are you able to trade both sides of the market?
I have permission from https://www.spytrader.net/ to post this.