Escape the losing dilemma to obtain the Holy Grail
After losing
you will surely keep losing in a row
Until you escape this dilemma, you will keep losing
Nanshin (averaging down) is cutting losses with the averaging down logic; do not add reversals
Trend pattern, range pattern, rapid pattern
those
patterns that move forward and patterns that come back
these drive the market
The act of averaging down itself is a very damaging action within this pattern’s cycle
Averaging down, staying with that logic and taking a stop loss to enter rest is the correct approach
The winning logic (profit rate) is
simply entering with the trend in line with the flow
and explaining those with trend following, such as N-pattern
It means you don’t need to perform a bottom fishing of N
There is nothing slow about aiming for the trend
(Because you are aiming for a major trend market)
However
you only succeed when you succeed
The timing of that period is unknown
This profitability logic takes time
It must be a one-shot plus time-wait model; otherwise the profit rate won’t be high
This logic type requires caution; caution can lead to mental breakdown with a single misstep
In the market, only the direction matters
You simply edge into that direction with averaging down
With averaging-down logic, you cannot rescue the rapid pattern
If there were no rapid pattern, averaging down would be a flawless hundred-for-one logic
Contrarian averaging down and N-shape one-shot
are the main trading logics
The factors causing contrarian averaging down to lose are
to implement a stop loss and to perform a reversal
A stop loss only exists in markets that cannot be saved
If you cut losses, you take a rest
One shot leaves only N-shape and breakouts in the logic
You must wait for time above all
Success is a matter of luck
Also in a one-shot, you must delay profit-taking as much as possible
You must wait until the very end of a large trend market to take profit
Trading only when those conditions are met is the key to winning with one shot
In other words, “each trade lowers the profit rate”
As much as possible, you should limit the number of trades