Re: This bad habit will cost you a lot in trading

Quote from: LogitechMouse on August 21, 2024, 06:55:30 PM

Quote from: laubeaud on August 20, 2024, 09:00:06 AM

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Do you only trade according to the trend or you counter-trend trade from time to time?

There's a famous quote that traders and those expert in technical analysts are using and that is "The Trend is Your Friend".

Even the expert traders aren't trading against the trend because it will give them huge losses. I tried it one time personally when I'm trading in futures. I tried to trade against the trend and I end up losing a portion of my capital. I already put a stop loss before I did it that's why I didn't lose all of my capital, but for those who are thinking to try it, I don't know if there's a way for you to make up profit even though you're going against the trend. Even though we are saying that we should not trade against the trend, there are still some who are accidentally trading against it because they don't know how to read charts. Cheesy

Overall, as much as we are saying that we should not make trades that are against the trend, there will still be traders especially those newbie ones that will do it without them knowing it. Cheesy

Newbies who actually trade against the market trend are not aware with that, probably because they don't know either what's the current market trend. They only trade for profits, not knowing that the best strategy to trade for profits is by trading in line with the trend, and not above or beyond the trend. However, there are also well-experienced traders who sometimes go against the trend, just like while others are buying, they chose to sell instead. That's how they also make profits, and as long as they are actually aware of its consequences if ever, then for sure they do it with caution as well.