Topic: This bad habit will cost you a lot in trading - page 2. (Read 561 times)

In my trading journey a lot of times i am invest against market trend, provably i success in one or two trade and those was unexpected profits because my entry was against market trend, so it’s of course dangerous move for everyone to trade against market trend. Beginners traders can mistake because they are not enough skill in trading.

But I hear scalping kind of very short term trading strategies will be good when you go against the trend. You will get multiple entry and quicker profits. I am not sure still because personally I haven't tried scalping and that too against the trend. Basically I am a long term holder but these days I started planning for day trading if any working strategies are available.

Many of my friends are still warning about my plan, but I look for exploring new things which would be profitable by the end of the day.

Trading against the market trend seems more risky to me. Because if the market conditions are not in my favor, even if I only trade against it, I may end up with a lot of financial losses.  But it depends on some things. If I am trading short-term, I am less likely to profit by going against the market. On the other hand, if I am trading long term, I may go against the market thereby increasing my chances of getting more profit in the future.  But for this, of course, where I am trading is also very important. But in the case of trading, risk must be taken. And if I trade against the trending of the market then maybe it will bring profit for me.

It's rare to win when you trade against the trend, you will only lose in the end. Just like gambling, when you try to take advantage over the house edge, you will only get frustrated and lose all your funds. That's why if you want to trade nor gamble, just go and follow the market trend, no need to take a revenge and go against with it.

Applying only one strategy to all conditions in trading I think is not too bad, in fact if the strategy is carried out consistently then the trading is likely to be successful but back to broad knowledge in trading to avoid unwanted things I think all traders must have that knowledge or learn it. In trading anything is possible to happen and the level of risk for that I think all traders understand and understand that traders must also try to minimize the risk, namely by expanding their trading knowledge.

Trading only on one side or following one strategy will never make you a good trader. To become a skilled trader, the trader should start trading after knowing the trading related knowledge. Trading when there is a trend in the market increases the chances of profit. However, in any favorable or unfavorable conditions, when the trader can gain the courage to trade according to the market position, he will be able to make profit if he trades. If he decides to trade, he must take risks. Trading with the sole intention of making a profit increases the chances of losing. Every trader must be thoroughly researched before taking a new entry in trading.

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.

Most of the time, I would go with the trend just because it may become true, especially if there is a lot of confluence with other indicators in the trading strategy I am using. What I like to do with my risky account is to get on the most famous possible trends and go against them. It's like the reverse creamer thing. It's like that, in my opinion. It is just for fun.

Every trader knows the saying of the trend is your friend!!

Trading against the trend is like trying to catch a falling knife and you can imagine the aftermath...

Agreed, but the only problem about trading is that you can't trade with only one factor, to increase your winning rate you need other confluences such as multi-timeframes analysis, knowing which order block will hold, your premium and discount etcetera

One thing is for sure, if you trading on the wrong time frame you might think you are trend trading when infact you are counter trading which goes to show multi-timeframe analysis needs to be mastered!

Otherwise trend trading is much easy to trade with unlike counter trading which takes time to hit your take profit 🎯

What about buying when the market goes down? You do go against it, but you wait out for the dip to correlate eventually. Of course, it shouldn't be done on unstable coins, but rather on big fellas of the market.

Yes, one of the skills needed in trading is adapting to circumstances, and that includes trends. However, many people have made small or large profits just because they suddenly followed the trend. However, this also needs to be accompanied by analysis, because when market trends occur, quite a lot of people take advantage of this to their advantage. So, although following trends is good, we need to carry out analysis and speculation, while adapting to it.

A trader with years of experience knows when it is time to sell and when it is time to buy, but newbies find it difficult to determine. Going along with the trend does not guarantee profit as well, but I believe it will work when carefully analyzed. This will happen if you spend time analyzing the market and checking the time frame of changes. It really takes time to do that, which is why we necessarily need patience for this because rushing makes no good results but losses and wrong orders. 

With all the things needed in trading, we can conclude that this is not an easy job. It needs focus and dedication, or else we are putting ourselves in a losing position. This is the reason why many traders fail, as they assume they can ride the market volatility easily, yet they do not. 

I learnt my lesson the hard way. Now, I don't go against the trend. If the trend is for price to go down, I have to go down with it and vice versa. One thing I didn't realize and I think a lot of traders don't realize too is that we have no control or power over the market so when it's going up and we try to make it go up, we will just get our capital eaten away. I had several trades during the last black swan like dump that happened due to the blowout from the Japanese carry trade. Instead of agreeing that the trend is downwards, I tried to stay long for as long as possible and that cost me.

Never again.

You don't trade and go against with the market, that's never trading at all. Trading simply means that you consider all the market trends and its sentiments, and abide with how it moves in the market. That's the safest way to trade so you won't be dealing with possible losses in the end just because you trade following the opposite path.

Trading needs to be a smooth sailing activity, so you need to befriend the market as much as possible and learn not to go against its way.

Trend is not always your friend, its not always your enemy neither, it depends on the day and the trends. Sometimes it is your friend and if you follow the trend then you make money from it, and sometimes the trend isn't your friend and then you end up making a loss if you follow it.

It's hard to know which one you are in at that moment which is why most people do not make infinite amount of money. If we knew what we could do then we would be able to actually do something, but we are basically seeing this as the most normal situation because we are so used to it at this time. Because nobody really knows what's going to happen in the market, we just end up not really caring about any of this and try to avoid doing anything about it in general.

I personally believe that we are going to have some good results if we know what we are doing, and because of that we can make this work one way or another. Keep on investing the way you know and ignore the trends.

When you do make out some counter trend then you would really be just that basically putting up yourself into such potential risks or trouble in regarding into your trading position or open orders.
But as we do all know that telling on what would be trend will be into the next hour or days or weeks then it would really be that something that cant easily be predicted. There's no way that you could
possibly be able to make yourself precisely tell on where the market trend will really be going. This is why actions would be made will really be always remain random and speculative just as so with the market.
There would really be no assurance that you will be able to make yourself that making out that precise position but of course there would really be that significant differences in between to those traders
who are really that good when it comes to their trading analysis and other steps on which not all would really be having on the same skills and capability. Although it wont really be giving out that 100%
precision but it is really that so much better in compared into those traders who do make out some positions without having any basis or simply its really just that being random.
When dealing up with a speculative space then it would really be just that normal that you would really be needing up to be mindful in correlation to things on what must be done and mind on.

I believe a trader can only trade against the trend if they are in the futures market because, in futures, you can get profits whether the market is moving positively or negatively. So, going against the trend doesn't always make you lose when you are in futures trading. In spot trading, you can't go against the trend because that will surely not be a pleasant thing to do when you can clearly see which direction the market is headed.

Even short-term trades can't go well when you are trading against the trend. Imagine the market is constantly going down, and you are trying to get some profit from a coin. As the market stops for a while, you buy immediately because you think it is going to go up, but you avoid that the market is in a correction mode and signals are completely against taking positions for an upside.

It's a high risk, but smart money usually tries to break the trend in their own favor to get better positions / for some other reasons, thus, it's ideal if you try to follow them, both against and with the market

I think only as a short term trader can your trade for the short term go well. If you’re a long time trader, counter trading may not have an overall effect on your trading if your analysis shows that in the long run, the market will reverse in that trend and change the trend to the new one you’ve Analysed and expecting to start. Most traders don’t counter trend because it spoils their reputation especially those that have students under their mentorship that they're guiding and teaching how to learn trading. Counter trade is not for the newbies, so it should be avoided.

In my earliest days at trading, one of the many lessons i learnt was, to never trade against the trend. It’s a no for me as that lesson has sticked and is something I find to have been really helpful through the many times I’ve had to trade.
Basically, it plays out when my analysis is on course with the trend, I go ahead to place a trade after looking at certain indicators like the RSI, MA and a few others. It’s less risky having to trade by following trends.