FX’s momentum trading slowly accumulates losses, but when a trending market appears, it yields substantial profits—the method of winning traders
Losing money can be mentally tough, but
when it comes to actually making money in FX, that mental fortitude is indispensable
Even with the mind,
if you’re using a trend-following method,
you can fall into the feeling that you can automatically cut losses
In other words, if you only follow trend-following strategies
you can master stop-losses
and then you can profit from the subsequent trend market
so basically it’s a win-win situation
Most moments that yield profits in the market occur in ranging markets
However, such markets do not last long
Afterwards, the opposite market comes along
At that point, you won’t be able to respond
Even if you think “I’ll cut losses!” you actually won’t be able to respond, so you end up unable to cut losses
As the trend market progresses, if you’re playing the opposite market, the losses will swell
However, in trend-following trading, from the moment a trend market appears, it’s profitable
Growing profits is the strongest aspect of the strategy, so it tends to survive relatively easily
In FX, this trend-following turn has been continually turning,
so unless something extraordinary happens, it’s a stable trading method
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