The strategy is said to be defense over offense, but persevering in defense too much makes profits too neglected.
In market strategies, I do think it’s better to specialize in defense rather than offense.
After all, those strategies work because they come with a set of trend-following moves.
If this becomes mean-reversion, the strategy loses its usefulness as a hedge against risk.
In relation to the outcomes of profits and losses,
profits become extremely small.
Markets operate through numerous cycles and spirals, forming a interdependent relationship,
so you must arm yourself properly even when going on the offense.
Otherwise you won’t be able to respond to market shifts,
and by focusing only on defense, you end up not making any profit.
Even if you can profit in stock trading,
there are people who can’t make any money in FX,
and that outcome is also produced by the cyclical relationships of risk hedging.
Losing is mainly due to fear.
To break free from fear, you need a strategy focused on defense.
However, a defense-focused approach weakens the essential proactive approach to the market.
With a fragile strategy, you can’t effectively engage with the market,
and as a result you end up losing more and more.
If you think of this as a market strategy,
you realize it’s a weak strategy.
Ultimately, trend-following in the long run wins,
so it’s reasonable to say you should simply follow the trend,
but such market conditions don’t always appear.
Unless you trade with a balanced plan that combines both defense and offense,
you won’t achieve universal, reliable results.
Because that is the trader’s own expectation,
and it serves as the market’s benchmark axis.
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