Topic: Pro-trend or Counter-trend? - page 2. (Read 232 times)

It really depends on every trader. There are some traders who follow this and some do the opposite which is the counter trend.
For example, some traders are trading like "buy the dip". Some traders are against it because if we say that price action is a down trend, so there's no guarantee that it will go up so some will assume it will just continue to dip.

Which strategy to pick depends very heavily on the market or even the assets you trade, for example there are stocks which move within a very predictable range, so in that case it makes sense to make some trades against the trend once the support or resistance level is reached, but when it comes to bitcoin you need to make trades that follow the trend, as you do not want to be caught on the wrong side of the market when bitcoin makes one of its monster moves.

When trading, we can't be sure which trend will work best. I won't affirm which is the better option; pro-trend or counter-trend. Many people have benefited from following the pro-trend more than the counter-trend. Both trends occur in a market, but recognising which trend to follow at that time to capitalise on an opportunity when it arises is the greatest thing to do and demonstrates the qualities of a competent trader. If you don't know how to detect a trend, go with the one that is visible and easy to decide on to prevent losing money.

If you have ever heard "missed the train" then that sentence is for traders who are late in entering the market or what we usually know as pro-trend traders, i have never tried to be a pro-trend because i know that entering the market when the market is bullish will be in vain in the future ^{(when the bullish trend ends)}
However, counter-trends are usually always associated with traders who always buy against the current trend ^{(if the market trend is bullish then he will sell, then buy when prices fall)}, i tried several times to become a counter-trend trader, but i saw that the risk was the same as a pro-trend trader, so only entering the market based on technical and fundamental analysis is something that is always taught by professional traders, they know that the crypto market moves very volatile and unpredictable.

This term is true for the altcoin market. Though there are other factors that are also responsible for the massive rally of some altcoin. The problem is that if any token is pumping without any trend going on for that category of altcoin then it is being manipulated by the whale or someone who has insider news. That's why most retail investors have never been able to take entry at the exact bottom before the pump if they haven't already invested in that project by that time.

When there is an ongoing trend, usually all the altcoins in that category start pumping no matter how good or legit that project is. This happens because retail investors start looking for projects that haven't pumped yet in that category. That is the reason all the projects in that certain category start pumping eventually.

It depends of the trend you are talking about actually because there are institutional investors trends and individuals/small investors ones. And they are often opposite because they don't look at the same things. They don't listen the same news and they don't monitor the same indicators especially. So I'm more confident in following the institutional investors one when I'm able to be aware of it and generally to counter trade the small investors one.

This is just so broad that you really can't just pick one or the other. It's like saying "bitcoin or alts?" — the latter being a very broad asset class with thousands of tokens.

As with trends, under what indicators? On what timescale? Trend of what specific asset? A decent amount of factors to take into consideration.

A trend is your friend, it is true but it is only true if you are holding your coins or trade your coins in Spot Trading.

By trading with Spot, your fund will not be liquidated by Long squeeze or Short squeeze. It's not true and different if you use leverages for your Margin trading, your fund can be liquidated and you will lose your money.

Going deeper to this liquidation story. If a trend is bullish, you make a collateral in Margin trading, use like x5 or x10 leverage, when that coin has a correction, your collateral will be liquidated. So even the trend is bullish, it's not your friend if you use leverages.

Same for bearish market, the trend is bearish but if you go with Short position, with x5 or x10 leverage, Short squeeze happens and liquidates your collateral. The trend is not your friend if you use leverage for short.

Whichever trend you follow, there is a profit but timing is essential. When market is bullish, is very easy to follow, buy and hold until you see that you have had enough profit already but when they get enough satisfaction, many of them don't even know when to stop, they get caught on the emotional agitation of the market that a coin is making another new time high which they should have exited in the first place. Short traders use this opportunity to counter trade the trend and when small mistake happens, the free fall began and you know what? The profit of short traders is always bigger than the long traders because it is difficult for the market to go up than for it to go down. It's possible for the market to shed blood bath of -50% than for it to make 50% upward and will remain there.

However, whether pro trend or the opposite, we need the two of them to balance the market especially in the futures. You can't long a market is the short order book traders are empty, they have to be a balance between two traders who think in opposite trend to decide the trend of the market. But if we all think in the same direction, it will make bitcoin to grow more but practically, that's impossible.

Following the trend is a good strategy if the price breaks a certain level and there is enough trading volume for the price to continue rising, but determining the exit point is the problem, as it is better to withdraw your profits as soon as they are formed, but you may have easily missed the opportunity to obtain increases of 5% to 15%. I will choose Pro-trend if the currency has good trading volume, such as Bitcoin, or an altcoin that received excellent news, such as a breakout of the support or resistance barrier.

Hello friend, my conclusion is that traders should trade what they like and what profits them most, this is why we are individuals and train individually, there is no way we will like the same thing or achieve the same results. If it's your style and it's worth it, it's a Go.

However, based on my almost 2 decades trading experience, it's worth pointing out that the best traders are the trend traders. I know this because I investigate traders and I'm also trading the trend, retracement and reversal, so I know what I'm saying. For trend trading, you might miss the retracing and reversal movements but it's worth it as it would minimize bad trade, keep you focused and make you hold the position of the majority. The careless acts you can commit with trend trading would only amount to the total loss of your money with opposite strategies, which is another safety reason why people choose it, it mustn't only be for the profit-making, the safety of the account matters too.

Finally, I don't dissuade people from making their choice but if you must add a reversal strategy you must be ready to be proactive with your account defense. You might want to be using a tight stop loss and should not be patient with a losing trade when you trade the opposite of the market trend.

Following trends is the best choice. This is clearly a reference for traders. As long as I trade when I go against the trend I experience a lot of losses.

Different from spot investments in bitcoin. During the bearish phase I prefer to organize Bitcoin purchases on a DCA basis. This is clearly against the trend, but because my goal is long-term investment this is different. And the profit I get is also quite large with this method.

Actually there's no way on telling precisely that counter trend is really that much more profitable or effective than with pro-trend on which if we are really just talking about that common sense approach
then it would really be always ideal that you should really be not going against the trend or simply trying out to counter. Why? It would be basically be going against it which means losing would be inevitable,not unless if that counter trend which is really that something on the end line on which pullbacks could usually happen on which it would be an advantageous thing for you
but the questions are ff;

1. How you would define the bottom or peak?
2.  How you would be able to determine if its the right time to make some entry?

Every steps that would be made then it would really be accompanying such risks which its not shocking anymore since each trader does really need up to take such risks
and it would really be that up to you which method or analysis that would really be working for you or not.

Some people think that you should always follow the trend when you trade to increase your winning probability.

Is that true?

I believe that your potential reward would be higher if you trade along with the trend because the EOF is making new high or new low, so we should expect that there is a break structure to occur when the pullback ends. This doesn't mean that your win rate would be higher. There are traders who are profitable with the counter trend setup, and I believe that there are traders who wins more with this.

Well, to identify which trend you can win more, we will make a poll to identify whether pro-trend or counter-trend usually has the higher win rate.