When I did a postmortem of my losing trades, I was
surprised to see that most of them were counter trend trades. Why has one of
the most effective trading techniques fallen by the wayside?
"Trend is your friend" is the first rule I learned when I started this journey. Since then I might have read it thousands of times. Why I am disregarding this old rule and lately trying to trade counter trend and lose money.
Nothing I know about trading is more effective than trading
in the same direction the market is moving. Still I do the opposite many times.
Is it because counter trend setups looks more juicy and with the trend set ups
looks difficult? I don’t know.
Once the market establishes direction, it generally
maintains that direction for a period of time.
There is really no need to buck
the trend.
Thanks. Enjoyed your writing. :-)
ReplyDeleteA nice one ST. Thanks. I think I have been in this boat a long time.
ReplyDelete