I talk a lot about momentum — and for good reason. It’s one of the most reliable signals in the market.
But every now and then, even experienced traders —myself included — get tempted to fight it.
Here’s the truth: Trading against the trend is one of the easiest ways to lower your win rate, shrink your edge, and frustrate the heck out of yourself.
I’m not saying you can’t ever catch a bounce in a beaten-down name. But if you make a habit of trying to “call bottoms” or “fade tops,” you’re stacking the odds against you.
My Personal Experiences
I made this mistake one time on a trade on T-Mobile (TMUS). It was in a strong sector — Communication Services (XLC) — but the stock itself was in a downtrend.
I convinced myself it was due for a bounce.
And maybe it was, but that’s not a high-conviction trade. I forced the setup because I wanted it to work, not because the trend supported it.
That’s the danger.
When you trade stocks that are trending lower, you’re relying on a reversal. That’s a low-probability setup. I’d much rather trade something that’s breaking out — something with momentum and sector strength at its back.
Same goes for trading weak sectors.
I once broke this rule, too, on an Eli Lilly (LLY) trade. Great company, yes. But Healthcare (XLV) was lagging. The trend wasn’t there. And the trade didn’t work.
When you stick to strong stocks in strong sectors, everything gets easier. You don’t have to time reversals. You just follow the strength.
Trading with the trend doesn’t guarantee a win. But trading against it almost guarantees a headache.
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Jack Shocked Roger With New Data on Tesla
You all probably know one of my mentors, Roger Scott… He’s shown up on some of our free roundtable sessions…
This week, he and Jack Carter have been causing some buzz — and for good reason…
Apparently Jack got wind of Roger’s 12-trade streak on TSLA over the past year in his free VIP Trade Room!
Obviously, those results are not bad…
But when Jack showed him a peek of how we’ve been targeting Weekly Cash flow from Tesla whether the company rallies…
Tanks hard… or even remains flat…
The man was stunned! He even asked to share the details with his followers.
Now I cannot make promises of future returns or against losses…
But if you want the details of the same TSLA setup that led to a $1,260 payout on one of the top trades in early April…
$1,250 payout in early May…
And another $1,260 late last month… all from $2,500 invested in each setup.
Go check it out here for FREE
Once you do, you’ll also get a chance to follow along for the newest opportunity setting up for us to take advantage of…
The profits and performance shown are not typical; we make no future earnings claims, and you may lose money. From 4/03/25 through 5/27/25, the average win rate on live published trade alerts is 66.67%. The average return on options trades was 3.21% over a 6-day average hold time.
