Why do contrarian bets lose?

Contrarian trading wins immediately, allowing repeated wins

Because you can win repeatedly, in a market where increasing capital trading is the basic style, you end up losing

Momentum trading cannot win repeatedly

Profit can come all at once

Minimize losses and profit comes all at once

of the

and earning profits repeatedly makes it so that if you don’t decide for yourself, a market that can lose all at once will come

the result of increasing capital differs

In the basic axis of the contrarian trade described later, the ability to discern whether a market that can lose all at once is “true” does not exist for anyone

Because losing markets are often just noise,

if you keep cutting losses each time, the losses will outweigh the gains

However, to selectively target only markets that can lose all at once would cause losses to expand

and as a result, a big loss waits no matter how you scramble

1) In losing markets with noise, losses from stop-outs are many, so performance is poor

2) To selectively target only losing markets, you end up cutting losses after a big loss, resulting in a large loss

In contrast, with momentum trading, the results are exactly the opposite, which is why

profit can come all at once, making capital increase easier to succeed

Fluctuations of capital

The concepts of momentum and contrarian trading are simply different

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