Counter-trend trading can be consistently profitable, but in the end it leads to substantial losses
In contrarian trading, you excel at continuing to profit, so
there are many traders from beginners to advanced who prefer contrarian trading
If you consider it by rule of thumb
the more you watch the market, the more trend following (following the trend) tends to dominate
If a trending market appears, following the trend is extremely effective
However, on the other hand
the longer contrarian trading continues
the more disadvantageous the trend-following becomes
It isn’t that a trending market leads to a range market and back to a trending market
but rather
a sequence like range market → noisy market → fake trend market (a market that bends) → range market → trending market
like this
after various market conditions have finished
the trending market begins
There is a reason for this
there are traders who keep profiting from contrarian trading
and the profits cultivated in that market are
the main interactions in the FX market
This is why contrarian trading is said to be the trump card technical that actually yields profits
What we actually observe are ranges and patterns where contrarian profits appear
but ultimately, almost every time
the pattern ends with trend following being the winner from past to present
Therefore, even if contrarian trading is stable
in the end, the stable ending is for trend following
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