XJO 0.82% 6,818.0 s&p/asx 200

spott's - fade the false break - tuesday

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    Who is our Mr Spott (Why Spott, Spott?)

    Spott at first glance, seems a fairly sensible fellow. Definitley not lacking in confidence. He is forthright with his opinions and they appear well thought out.

    A bit of a philospher - he has views on types that are successfull traders

    '- success at betting on horses ( both bookmakers and winning punters)
    - card counters in blackjack
    - people who live in country towns
    - people who have a background of thinking critically eg students of philosophy or religion'
    SPOTT - March 15 2010

    Spott, not a fan of TA, is more a support and resistance kind of guy.

    'i think positions have to be set at where you expect support and resistance to be... so that when you sell strength in an extended up move, of course all the derived indicators disagree with you' SPOTT - July 18

    He also had definite views on Wider Profits taxes.

    'It's the revenge of the parasites. I mean how many parasites feeding off the government breast-(word replaced) does it take to run this country.' SPOTT 22 June 2010.

    To complete this diverse range of interests. Spott is a Takarazuka fan.

    Spott's big money making tip is this...

    'I think one of the smartest things anyone can do is to fade the false break.' SPOTT-July 18

    I knew what a false break was but had to check the fading bit...

    'Fading the market is the process of taking a position that goes counter to the primary trend of the market. This trading strategy is a suited for traders that are more open to taking risks and are able to handle the emotional run sometimes associated with going against the market. Traders fade stocks because the majority of gains are seen in the first part of a move, when everyone else was afraid to take a stand. This is why fading the market, if timed properly, can prove extremely profitable when calling a market bottom.'

    It sounds a bit scary. What indicates it is a false break - volume?

    The day belongs to Spott - which means you have to give him thumbs up no matter what he says.

    Happy trading xjo'ers
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