Long positions are a sequence of disadvantages, but in the end the market is built so that you will surely profit
I think the FX market is the most conducive market for trend-following.
Since FX operates 24 hours on weekdays with holidays off,
due to that mechanism, trend-following works more effectively.
Traders who profit from contrarian trading include scalpers and day traders.
If you try to profit from contrarian averaging (grid) trading, you must trade like a day trader.
One method that has become unusable due to countermeasures is
the reverse-averaging micro-scaling (秒スキャ, seconds-scale scalping) contrarian trades,
but brokers dislike them and have countermeasures, so they’re often unusable or frozen.
Contrarian averaging day trading is the most universally manageable.
In practice, it’s something that can generate profits again and again.
On trading ranking sites, traders who consistently earn tend to
use contrarian averaging strategies.
(When a real trend market arrives, you can see these traders’ results perform poorly,
However, trend-following will absolutely occur in the market.
That sequence is also related to how this market is handled, with 24/5 trading hours and days off.
From the point where contrarian day trading can reliably produce profits,
a trending market will arrive.
And before FX markets actually go on holiday, a trend will have progressed.
At that point, many contrarian day traders suffer.
Day traders are also referred to as swing traders,
and in such a state they’ll be caught off guard.
Generally in this case, you need to determine whether to cut losses, but
that element of “determining” is often unnecessary.
Because it’s where the loss-cutting would be most appropriate anyway.
It’s precisely because the market has historically followed contrarian trading instincts
that being able to cut losses in such moments allows you to profit stably from contrarian trading.
But in reality, only a handful of people can do that, so everyone ends up losing here.
This becomes the trigger that begins forming a trend market.
Trend-following trading becomes noticeable at this time.
And profits continue; as long as the trend hasn’t fully ended, you can ride it upward
In trend-following trading, you can cover the market so that you ultimately profit.
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