How often have you noticed investors winning by going against the dominant trend? We are not saying he should declare war but one betting his money against the odds. The answer is probably never because it is not a wise decision. This industry is huge and millions of people spend money every day. Although it is advertised as a great opportunity by brokers, people discover a contradictory picture. More traders lose capital than making a profit, let alone building a fortune. Many act smart but end up losing the capital. Traders have two choices to manage funds in Forex. Either they abide by the rules or simply go rogue. After experiencing bitter results many choose the second option although it is not recommended at all. Interested individuals often get thrilled to know this but the consequences should be known as well. This article will focus on this topic and explain what might happen if one chooses to go against
The investment will be at stake
This is the first impact that will be visible immediately. Every trader has taken these decisions once in a lifetime to avenge or recoup the lost fund. Still, the result was much worse than anticipated. When an investor decides to defy the pattern, he commits financial suicide. Not only he is taking a bad decision but risking all the deposit. How can a person make a profit if the trend is going down but he opens a buying position? The balance will soon be negative and he would be out of money in no time. Trading is already dangerous no need to invite unnecessary hazards. Focus on the goal and follow conventionally. Methods to stay safe. If not achieving satisfactory performance, helps can be found when required.
Use a trend trading strategy
Some of the rookies in Hong Kong love to use counter trend trading strategies. When you learn about the professional Forex trading strategies, you will notice most of them are trend trading techniques. The reason you should not take the trades against the trend is to ensure the safety of your investment. If you take trades against the major trend, it won’t take much time to lose your entire trading capital.
This concept can never win
This method of trading can never be profitable. Traders often decide after losing their funds. They became so angry they forget the sense of right and wrong. It should be noted that people usually invest in capital randomly. Seldom have they analyzed the trends to derive at the financially profitable conclusion. As desperation strikes to get the money, they seek solace in such dangerous tricks. They started to believe that planning accordingly with the trend has failed to produce a fruitful outcome, let’s go against to see what happens. Never do this because it will destroy the career. This is not a two-sided coin where the other is right.
Trend directs the position of cash flow
This is a huge benefit, especially those who can read the chart correctly. Experts concentrate on the data and figure out where the price is going. They simply put up a formula, trade in favor of the direction, and become a winner. This community is no different than people like you. Once the capital flow has been identified, it’s a matter of time to get the money. Try to understand how to devise a working formula based on existing market volatility. Do not try to avenge or go against because this never succeeded.
Only dominant volatility is profitable
This is important as volatility is misunderstood with potential opportunities. But every movement is profitable. Erratic volatility does not contain money and it lasts for a short period. One who looks for possibilities in every price movement can never win. If it’s not dominant, do not mind and simply skip. When traders go against dominant volatility, there’s no feasible chance to make a profit.
