Risk control brings favorable profits to both technical and fundamental aspects
Risk hedging is a nice phrase to say
But as you plan to profit from that risk hedge
In the end, it doesn’t go well
The word “risk hedge” looks like a good word
But in the end it becomes a cautious people’s double-edged sword theory
The theory is to steadily incur losses and then abruptly make a profit,
but
that becomes an academic theory
Because you are reducing risk to a minimum
No matter how much you do, it trends downward
In terms of risk control, risk hedge is in the opposite state
This is closer to a fundamental mindset than a technical one
Yet such trading perceptions
often miss turning points in the market
But please don’t misunderstand
Just because you accelerated the turns doesn’t mean the payoff is profit or a turning-point error
The market may look simple, but the market is complex and ambiguous
If the future were known, anyone could profit easily
No one knows, and the market moves up and down
So you end up not knowing what to trust
Trend following, counter-trend averaging down, one-shot, turning-point trading
Any trading logic, due to market ups and downs, creates profits and losses as noise
And if you want to increase profits, you must do things that could become losses
In other words, unless you bring in risk, it won’t grow as capital increases
This is what was meant by “careful losses with trend following,”
Based on such market capital increases
Considering the relationship between the magnitude of losses and gains
It’s better to rethink what is right for you and what logic you are good at
If you think about it
Don’t think in terms of risk hedging
Translate it into a logic that can control risk
You must wholeheartedly incorporate that idea into your strategy
Otherwise you won’t survive
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