Risk control brings favorable profits to both technical and fundamental aspects
Risk hedging is often said to be a good thing
However, as you think to profit from that risk hedging,
in the end it doesn’t go well
The word "risk hedging" looks like a good term,
but in the end it becomes a piecemeal double-edged sword theory
The theory is to incur losses steadily and then make a big profit,
but that becomes a theoretical model
Because you are minimizing risk,
taking maximum hedge, and in many markets the profit part doesn’t come out much
No matter how hard you try, it continues to trend downward
In terms of risk control, risk hedging is the opposite
This is closer to fundamental thinking than technical thinking
However, such trading recognition
often misses the turning points in the market
But please don’t misunderstand
Even if the turning points are accelerated, what you are waiting for are losses or turning-point mistakes
The market looks simple, but it is complex and ambiguous
If you could know its future, it would be easy to profit
Nobody knows, and the market goes up and down repeatedly
You end up not knowing which to trust
Trend following, counter-trend, averaging down, one-shot, turning-point trading
Any trading logic, due to market up and down noise, yields losses and profits alternately
And if you try to increase profits, you must do things that could become losses
In other words, unless you bring in risk, it won’t grow as capital increases
This is why trend-following was said to be steady cut losses
Based on such market capital increases
Considering the relationship between losses and gains,
it would be better to reconsider what is correct for you and which logic you are good at
When you think about it
Rather than thinking about risk hedging
It should be translated into a logic that can control risk
You must thoroughly incorporate this idea into your strategy
Otherwise you won’t be able to survive
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