If you master the technique, mean-reversion averaging down can be profitable in FX; trend-following trading is profitable once you get used to it, even without mastering anything
Contrarian averaging up tends to profit every day, but
in reality while you profit daily, there comes a time when losses can grow infinitely large
that is the trending market
if you cannot cut losses when this trending market arrives, you will end up losing more and more the more you engage in contrarian averaging
Many Japanese traders get lured by brokers
because of these kinds of tricks
In reality, they are drawn to a daily profitable trading style called contrarian averaging
and eventually lose in the ultimate trending market, being pushed to the broker’s nourishment
We need to change the trader’s sense of purpose
What was the reason you wanted to become a trader?
Were you hoping for a dream method to grab the highs and lows?
Was it to be absorbed as nourishment by brokers?
Was it to profit stably every day?
Any of these reasons would be wrong
The true objective should have been to “increase” (your capital)
Because true stability comes from that very act of increasing
That ability to increase is a trading strategy called trend-following
Trend-following means going with the trend in a trending market
Of course, you won’t profit unless you become proficient
To become proficient, you don’t need special techniques
It’s about the interaction between technicals and psychology
But it’s essentially working with a most deterministic and non-discretionary approach to discretion
In practice, surviving in FX most logically means trend-following
Understanding the importance of switching to trend-following can reveal how to survive in FX
※ For those who want to keep earning in FX, go here ↓
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