[Question] Nanpin is scary when a trend emerges and you take a big loss. What do you do in those situations? [Answer]
Question for the community ↓
A method to gradually increase by averaging down to catch trend and reversals
【Questioner】
Averaging down makes you fear big losses when a trend moves strongly against you
What do you do in those times?
【Answer】
In those times, it exhibits a unique movement
Wait a bit, then cut losses and switch to a calm market
Basically, contrarian trading is a repetition of that
Gradually make profits and reduce the big loss from a sharp move
With just that, you can steadily increase
【Questioner】
Ideally, I agree with that
But in reality, it's quite difficult, isn't it…
Even if you profit from averaging down, you get hit by the trend
【Answer】
That comes down to familiarity and consistency
If you become used to properly cutting losses and steadily increasing with contrarian averaging down
it's not that different from trend-following
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