This is the third time we have followed a contrarian trading portfolio here at TheStreet and the third time's a charm. This was by far the most successful of the three. The objective in publishing these was to show how short-term trading can be done within the following parameters:
- Select exchange-traded funds that will profit if recent trends change. (Be contrarian.)
- From that list of ETFs select those that show signs of trend change possibly being near at hand by using simple technical analysis methods.
- Market and limit orders can be used to enter both long and short positions.
- Limit risk by using stop loss orders on both short and long positions.
- Manage risk using options.