Contrarian Trader or Trend Trader?

Tom Gentile

Posted in
Daily Report

By: Tom Gentile
May 10th, 2022

2 mins read

How you Trade is Your Decision

Yesterday the discussion was what it means to be a contrarian trader.

The idea behind being a contrarian trader is that you would not fall victim to the herd. If everyone is doing things one way, and it isn’t necessarily the right way, everyone in that group is at risk.

Of course, if things are going well they have a chance of continuing to do so for a period of time.

We are in a bearish market environment right now and eventually that will end.

The discussion of contrarian trading yesterday was to speak to the mindset of trying to find sectors and industries, hence stocks or ETF’s that may be bucking that trend. It was encouraged for one to assess support levels, study price behavior at those levels and if a bounce seemed likely consider an option trade at that time.

To be a Trend Trader

The flip side of being a contrarian trader is to be a Trend Trader.

Just because we talked about being a contrarian trader as a way to gain a trading edge, there is some merit to trading with the trend.

A trend trader is one that sees an uptrend or downtrend in the market, assess the trend should last months or more and positions themselves to be in the market and plan to ride out the momentum for as long as they can.

They look for more of a global economic assessment and geopolitical concerns and less on technical chart patterns, per se.

The trend can be an uptrend as it is in Oil or a downtrend like Bonds.

Yesterday, images of the Morning Reports were given so one can decide if they see an opportunity from a contrarian view.

Equities overall, are in a downtrend, but if they saw a support level on a stock whose option made a bullish list that would be a place to discuss further with their broker.

Today’s images are provided so if one sees an option on a stock they feel is likely to trend in the current direction of the markets (sector or industry it is in) they can consider an option from a trend trader’s perspective.

Image 15
Image 16
Image 17

App: Toms Option Tools

Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.


Stock and options trading has large potential rewards, but also large potential risk.

You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.

This is neither an offer to buy/sell/ or recommend a particular stock or option.

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.

No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Disclaimer of Warranties and Liabilities Tom Gentile and TomsTradingRoom, LLC including employees, consultants, and editors (“Publisher”) cannot and do not warrant the completeness or accuracy of the content found in our areas, or its usefulness for any particular purpose.

Tom Gentile and TomsTradingRoom, LLC also make no promises that our content or the service itself will be delivered to you uninterrupted, timely, secure, or error-free. Under no circumstances will Tom Gentile and TomsTradingRoom, LLC be liable for direct, indirect, incidental, or any other type of damages resulting from your use or downloading of any content on our site.

This includes, but is in no way limited to, loss or injury caused in whole or in part by our negligence or by anything beyond our control in creating or delivering any portion of Tom Gentile and TomsTradingRoom, LLC.

You are agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that Tom Gentile and TomsTradingRoom, LLC will not be liable for any I, investment decision made, or action taken by you, or others based upon reliance on news, information, or any other material published by Tom Gentile and TomsTradingRoom, LLC.

Tom Gentile and TomsTradingRoom, LLC relies on various sources of information that we believe to be accurate and reliable. However, we make no claims or representations as to the accuracy, completeness, or truth of any material contained on our site.

Tom Gentile and TomsTradingRoom, LLC are educational portals, providing content for educational and informational purposes only. Neither Tom Gentile nor TomsTradingRoom, LLC are a broker/dealer. Investors need a broker to trade stocks and options and must meet certain requirements. All securities, futures, and investments data and ideas are offered to self-directed investors. All prices in USD unless noted otherwise.

A full disclaimer can be found here:

Sign Up Now for Free Education!