FX’s trend-following method gradually increases small losses, but when a trending market appears it yields a lot of profit for successful traders
Losing money can be mentally tough
But when it comes to actually earning in FX, that mental strength is indispensable
Even when we say mental
if you’re using a trend-following method
you can fall into the feeling that you can automatically cut losses
In other words, by just doing trend-following you can master stop loss
and then you can have profits extend when a trend market appears
so essentially it’s a two birds with one stone situation
the market has many moments that yield profits, and they are in ranging markets
however, such markets do not last long
afterward a reverse market comes
at such times you fail to respond
even if you think “I’ll cut losses!”, you actually cannot respond, so you end up unable to cut losses
as the trend market advances, if you are trading the opposite market, losses will swell
however, in trend-following, once a trend market appears, it yields profits
and extending profits becomes the strongest suit, making it relatively easier to survive
In actual FX, this trend-following turn has continuously come around
unless something drastic happens, it becomes a stable trading method
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