FX's contrarian strategy seems to be full of advantages and full of drawbacks

Just to say upfront, I can earn if I can properly cover losses with contrarian trades

In practice, when price starts to trend with the trend-following method, I commonly use contrarian averaging to profit

However, for the average trader

contrarian methods seem to have many advantages

yet in reality they come with drawbacks and a substantial number of traders suffer

because there are far more traders who look only at the short term

Simply put, some people say, “I want to make profit quickly!”

they tried trend-following, gave up, and say, “No, contrarian trading suits me better!” and end up repeating the same losses

They tend to think short-term

because everyone wants to earn when they start trading

including myself, this is what I truly want to do

However, if you don’t change this mindset, you probably won’t be able to increase your results

Because in FX

it’s not about

“earning” but“growing (increasing capital)”

you become able to earn once you’ve learned to grow your capital

This is the most straightforward way to implement as a trading method, which is trend-following

contrarian trading can allow you to earn, but its major weakness is risk of large losses due to weak stop-loss

Also, even if you stop-loss, becoming poor due to chronic losses is difficult

But with trend-following, the core strategy is to extend profits in a trending market

so it is simply “simple and easy to understand”

once you learn the contrarian perspective,

as you get used to it, you’ll start earning

The reason trend-following is profitable lies in this mechanism

If you don’t know this mechanism, you’ll fall into the pattern of giving up on trend-following

you might think, “I heard trend-following is more profitable, but I’m not getting any results at all”

and then you’ll fall into contrarian methods

Contrarian trading is a technique that assumes there is a pre-existing method

and mastering it depends on your skill as a trader

and it’s typically for people who are naturally suited to that approach

Most traders should basically engage in trend-following trades

But rather than just following trends,

focus on growing capital, riding trends, expanding profits

when you need contrarian methods, developing a strong mindset that won’t give up

This is the key to maximizing growth with trend-following

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