Advantages of Trend Following with FX: automatic stop losses! automatic profit extension!
Trend-following is said to be more profitable, but
the reason why trend-following yields profits is
because you can automatically cut losses
what this means is that manual loss cutting becomes
dependent on the trading method
In contrarian trading, profits are prioritized and the goal is profit
so you seek only profits, ultimately delaying stop-loss
However, with trend-following, since the goal is a trending market from the start
the stop-loss is not postponed, but you will stop out if there is no trend
there is a clearly defined, almost shut-down style stop-loss line, which is helpful
The longer you let a stop-loss run, the more you lose
but to maximize profits, this is unavoidable
In trend-following, once a trending market appears
the losses you cut become the basis for how much more you can profit
The advantages of trend-following are extremely significant
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