Benefits of trend following with FX: stop-loss executed automatically! Profits automatically extended!
It is said that trend-following makes profits easier to achieve,
but the reason profits come from trend-following is
because you can automatically cut losses
What this means is that manual loss-cutting often occurs due to
depending on the trading method
In counter-trend trading, you prioritize profits and aim for profit
so you only seek profit, as a result loss-cutting becomes a lower priority
However, in trend-following, since the goal is a trending market from the start
loss-cutting is not about postponing it; if there is no trending market, you cut losses
there is a clearly defined, shut-down-like loss-cutting line, which is helpful
If you continue losing as you cut losses,
it's inevitable to maximize profits anyway
In trend-following, once a trending market appears
the more you cut losses, the more you can greatly extend profits
The advantages of trend-following are extremely significant
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