What should be done to effectively use stop-over (turnaround) averaging or averaging down in trading?
Later転ナンピン becomes punished with a backhand if it goes badly
If later転ナンピン goes well, profits continue
Whether it succeeds
Whether it fails
or
That is転ナンピン
Is転ナンピン effective?
From a stop-loss perspective, it is “effective”
However, the market is created by traders’ expectations
In other words, the market moves in a way that benefits both sides
Someday a market will come that I don’t understand
Someday a market will repeatedly occur that goes exactly against my forecast
From this factual viewpoint
Is転ナンピン really effective?
The answer would be no, right?
転ナンピン will eventually fail somewhere
If you think that way
From the perspective of a single-shot stop-loss trade, it is more effective
Nanpin should also be traded from a single-shot perspective
By doing so
Nanpin can be traded in the same manner as a single-shot trade, making it effective
However,
As転ナンピン changes direction,
It brings the possibility of back-and-forth blows and expands losses massively
By imposing a stop loss
Losses can be reduced
By incorporating market sense and discretion
It can also escape the back-and-forth blows
転ナンピン cannot escape that back-and-forth blow viewpoint
Why is that
The trend occurs → actually a deception, in terms of
Because you assume “転ナンピン believes in trends”
Because you assume it believes in trends,
It will continue to back-and-forth blow
Even if you widen the range and improve win rate,
It ends up enlarging the range of big back-and-forth blows
And you will incur such losses again
Behind転ナンピン lies
Such an answer
Please always use stop loss and take a break as a viewpoint
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