Reversion to FX has only merits and no demerits

I’ll say this much: as long as you can firmly cover stops when trading reversals, you can make money.

In practice, when the trend followers get bored, they commonly profit from reversal averaging down, so I use it too.

However, for the average trader

reversal appears to have many advantages,

but in reality there are many disadvantages, and a lot of traders suffer because of them.

This is because there are overwhelmingly more traders who only look at things in the short term.

Simply put, they think, “I want to profit quickly!”

They tried trend following but gave up and said, “I’m better suited to reversals!” and end up repeating the same losses.

They think in the short term

when everyone becomes a trader, it’s because they want to “earn money.”

This thing is something I, and others, genuinely want to do.

But unless you change this mindset, you likely won’t be able to increase your gains.

Because FX is

not about

“earning money”

but about the mindset of “growing (the account).”

Once you learn to grow, you’ll start earning.

The easiest way to put this into a trading method is trend following.

With reversals, earning money is the primary goal, but stop losses are a major weakness, so the potential for big losses is high.

Also, even if you set stops, if you become poor at cutting losses, it becomes difficult.

But in trend following, the focus is on expanding profits in a trending market,

so it’s simply “simple and easy to understand.”

Once you learn the trend-following perspective,

as you get used to it, you’ll be able to earn.

There’s a mechanism behind why trend following profits.

If you don’t understand this mechanism, you might fall into a pattern of giving up on trend following,

and end up slipping into reversal techniques, thinking, “I heard trend following is more profitable, but I’m failing entirely.”

Reversals require certain techniques in advance,

and mastering them depends on the trader’s skill level,

and are generally for people who are already strong in that area.

Basically, for most traders, trend following is better.

However, it’s not just about doing trend following, but about

growing the account, catching trends, and expanding profits,

and having a strong, unwavering mindset when practicing trend following is

the key to maximizing gains in trend-following.

※ For those who want to keep earning with FX, see here ↓