What is the difference between trend-following and mean-reversion?

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Serialized part "Trading Philosophy"……7

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The term "ugly but skilled" (hete-uma) refers to the idea that in creative work, imperfect techniques can have charm, but isn’t it necessary that the technique be flawless?

Kabobon's Papa's saying "supporting opposition" is not merely "opposition" but carries a philosophically deep meaning...

In market terminology, there are surprisingly many emotional, intuitive aspects.

In the recent few sections, the explanations of "follow the trend" (jun-bari) and "contrarian" (gyaku-bari) do not have complete definitions, and even when people buy at the same timing, one may describe it as follow the trend while another may call it contrarian.

There are people who say, "Contrarian within the trend is good."

When explained with buying strategies, it creates positions as follows.

It has fallen

It has stopped falling

It has started rising

Decide, “Alright, let's ride,” and buy on pullbacks

After confirming that it has entered an uptrend (in reality, “I judged so”), buying on pullbacks can be explained as following the trend, while the timing of entering positions is contrarian to the trend.

This is what is meant by “contrarian within the trend.”

It may seem confusing, but it is an easy-to-understand phrasing for practitioners.

Many professionals value this image, and I think it represents a fundamental way of thinking for everyone.

・In a downtrend, it helps prevent carelessly buying as the price falls

・Gives rise to a sense of “riding the wave”

・There is an idea to avoid worsening the average by maintaining favorable conditions

By the way, the Shin-Yu Investment Institute’s Chugen-Line position method also adopts this approach.

“Contrarian within the trend,” with a three-part position management, establishes a clear rule-based trading method.