When attacking, it is better to make offensive trades

If you are Stop Trading

Reversal strategies have no edge = because they are not trend trades

Range trading relies on win rate

Markets move with momentum, so basically there is no edge unless you trade when a trend is present

Stop trading = just trade aiming for the trend

Stop trading = just aim for the trend; everything else is “rest”

textbooks say the correct setup is a trend-following entry, but

first, that doesn’t work in practice; markets that persist are only such markets

Basically there is no path other than trend-following trading

Trend → range → trend, etc.

There is no choice but to target the moment when a trend emerges

Trading that only targets the trend

Therefore you don’t even set a profit target, because you’re trend-following

Even if it’s a temporary trend, if you monitor it hourly you can identify profit pockets

It’s often a trend line

When you attack, you should trade aggressively

Otherwise, you won’t understand why you’re trading at all

Markets do not follow the textbook

You should use frequent averaging down with stops,

and that should be based on market observation

If you don’t make money from that, you don’t make money

Trend-following ultimately targets the same places

As the Turtle traders said

In the end, it’s just whether you’re suited for it or not

Even with the same rules or understanding, some traders win and some lose

The speed of the result is what determines it

If you trade based on market recognition and observation, you must use the above trade understanding

If you try other trades, eventually something will go off

Watching trend trading makes it clear

Moreover, before you hit the stop, you’ll cut losses or close small profits

Ultimately, the content of market-recognition and market-observation trading is unchanged

Trend-following trading and

trading based on market recognition and observation

The difficulty of timing in trading does not change

Is compounding actually correct?

I don’t think compounding is correct

Because it focuses on increasing wealth

You’re trying to make money, aren’t you

Increasing wealth and generating profit

I want to earn, and the bias toward that remains strongly

So you’re pulled in further as you yield to that bias

Therefore, you should not use compounding

Rather, you should trade using simple interest

In other words, after you truly grow to a certain extent with simple interest

Then reset and start compounding, which is the right approach

What’s unclear is

Even with trend trading

be cautious or have stops early

It doesn’t seem necessary to be trend trading

If you’re going to be cautious, then you should simply use frequent averaging down and trends

In the end, trading by switching direction is better

※ For those who want to keep earning in FX, go here ↓