There are times when momentum trading is profitable and times when it is not, so if you are going to do momentum trading, steel yourself for it.
Trend following is clearly divided into markets that increase and markets that do not increase
Markets have a direction, but they do not simply move monotonically toward that direction
In the end, they move while repeatedly correcting the market
So it is impossible to only “trade the market” during the “increasing period”
If that could be done with a high win rate
Then there would be no drawdown
The profit margin would be high, but the result would be poor and you would tend to end up breaking even unless you continuously hold profits
Because increasing is the right thing to do
If you want to increase with trend following, you pursue profits in the same way
If you decide to pursue it
In the end, you have to grasp the market in a one-sided (monotonic) way
Because the market tends to generate the most difficult conditions for trend following in a row
Such markets begin to prevail
If you are trend-following, you must overcome that chaos
After that, the market that yields profits comes
Moreover, it is a trend market with some retracements
Thus, unless you have a sharply specialized mindset for trend-following, it is difficult to continue holding
So if you are going to trade with trend-following
First, please steel yourself
Ultimately, what you do is “continue trend-following,” no matter what
To become someone who can do that
There is no choice but to continue specializing in trend-following
Continuing a trend-following specialized logic trade changes your market perception
Everyone looks at the market with algorithmic, automated-trading thinking
But no one can trade while remaining in that automated-trading mode
In the end, you either adopt a contrarian view or a trend-following view
And with a contrarian view, profits are secured
Then losses sift you out later
The trend-following mindset also involves doing the same thing
Ultimately, it is constant losses for the sake of eventual profits
However, once you gain that trend-following specialized market perspective
Profit will come, making it easier to recommend
But one thing I will say
If you practice trend-following, you will understand that such opportunities are
Really, really infrequent
Those who can do it are also limited
The more prominent the information that “trend-following is more advantageous” becomes
the more it persists in range markets
That is why a trading approach that only succeeds with trend-following cannot be created
That is why we translate it into a specialized trend-following approach
For the market to increase, it is better to know, both in mind and body, that trend-following and contrarian trading are distinct concepts
For your future market understanding
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