A strategy that simply follows the trend somewhat reasonably is easier to scale than one that is based on a well-considered contrarian approach.
In books that are often considered glossaries of the market
(especially older, highly regarded trading books)
they proclaim a contemplative system,
but a carefully considered contrarian approach
is inferior to a simply well-timed trend-following strategy
because the market proves it
when you look at the market, the trend clearly dominates
but real markets are full of noise
to operate as described in those past market drawings
you inevitably need to “continue with trend-following,”
and continuing contrarian approaches is not affirmed
Contrarian investing is a great way to increase capital in the short term,
but it becomes a disadvantageous strategy in the long run
Trend-following keeps you stuck only in losses until a trending market occurs,
which can lead you to feel like you’re gambling
and your thinking drifts away from truly investing.
Yet, those who endure with their mentality
and persist with trend-following eventually encounter a trending market,
continue to grow profits and succeed in increasing capital
There is a clear basic premise that “if you do trend-following, you will win,”
yet many traders don't do it because the preceding downsides are mentally painful
But with a mindset capable of overcoming that,
those who persist with trend-following can become renowned as traders
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