Enjoy Being Right; Prepare to Be Wrong

This column was originally published on RealMoney on Nov. 28 at 12:00 p.m. EST. It's being republished as a bonus for TheStreet.com readers.

While many smart guys make a living being contrarian (which I define as picking bottoms of downtrends and tops of uptrends), I gave up on that discipline a long time ago. Instead, I try to buy strong stocks on pullbacks and short weak stocks on rallies. I believe that as long as I'm leaning in the same direction as the prevailing trend, the odds of making money are increased -- so long as rigid discipline is a significant part of the trade.

If you're one of the much-maligned "momentum gang," you must understand why you are so despised by contrarians. As long as you are right, they are wrong, and it ticks them off. Why? As long as the trend persists, trading seems almost too easy.

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