The market ultimately cannot be beaten by momentum, so counter-trend trading ends up being disadvantageous in the end
Contrarian trading is completely suited for short-term markets
It proves effective in range-bound markets
However, once a trend market arrives, you are placed in a completely disadvantageous position
This is somewhat like a form of martingale
Even with martingale, as long as a string of losses doesn’t come, you feel stable
and you mistake that feeling for winning
If losses accumulate, you’ll understand the reality
Because it says that the upcoming reality is that contrarian trading will fall into a disadvantageous state
Then a trend-following strategy becomes the reasonable trading approach
Of course, I have no intention of denying contrarian trading altogether
If contrarian measures are inadequate
then that only suggests that trend-following strategies are the most proficient
Of course, mental discipline will be required
If those who were being heavily defeated by contrarian trading
look at the current situation where they’ve become accustomed to trend-following and keep increasing profits
You’ll realize that trend-following trades are a fully guaranteed winning strategy
One thing I don’t want you to misunderstanding is
that you won’t win from the start
They won’t increase unless a trend market appears
but if a trend market does come, it ends with capital increasing at that time
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