Non-profitable trend-following logic, because it’s a half-hearted trend market
Trend-following in trending markets is a logic that does not generate profits
First of all
1) easy to cut losses
2) not much trend extension
3) in reality it takes quite a long time for a trend to actually develop
4) unless it is a real trend, you are in a state of partial take-profit
This is because they exist in zones 1–4
If you are going to aim for trends, only target trends that truly extend
Because you cannot be proactive toward the trend
It would still lead to losses even if you become proactive
For example
When you feel a trending market has appeared and trade
the market moves as you expect
Later you keep pyramiding and add more trades in various ways
And so on
As you do this
suddenly everything retraces and you cut losses on everything!
That’s the kind of thing that happens
In the end you can only
trade in a zigzag pattern, resembling the letter N
If you cannot trade this N-shaped logic according to its concept
you cannot actually earn from trends
Moreover, markets have a lot of noise
Therefore, put simply, what you can do is
wait patiently for the trend market
In other words, “the days you trade come only about once a month”
In other words, you are effectively trading a trend market that only comes about once a month
So, you wait, and
you only need to trade about once a day
Because you cannot do this
there is the concept of averaging down
By limiting losses to when necessary
you can earn more than with a trend-following logic
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