Many traders prefer a contrarian strategy, that is to go against the crowd and in effect to go against the trend. It can work equally well but often requires stronger conviction and a more robust Now the “Trading Against the Crowd” strategy is consciously used by no more than % of traders. It’s not so easy to make use of this strategy profitably so that all at once rush to study it. People are looking for easier ways out, but the strategy requires thinking, working and spending a lot of time The answer is quite simple – follow the crowd when it coincides with your own established trading strategy and get out of the trade as soon as the market turns against you, even if you are not in profit. Greed is bad. However, at this point you will encounter the problem we spoke of earlier –
Are You Contrarian Trader or Follow-the-Crowd Trader?
A similar situation will happen to everyone willing to trade against the crowd in Forex. As we have mentioned here at FXSSI we use OrderBook indicator as the main tool for analyzing market sentiment.
One can expect various surprises from the market. In our case, we need to know how to recognize the validity of a signal by open positions. To do this, it is necessary to resort to filtering signals using other tools, such as a technical analysis, an order book, etc. The crowd will never do that so the interest of the vast majority of traders in this strategy will abruptly spring up and then also rapidly fade away.
If everyone starts to trade against the crowd, the majority will be formed on some side anyway — in other words, one side will inevitably outweigh the other side. March 31, And then an old video comes to mind: A similar situation will happen to everyone willing to trade against the crowd in Forex. Sentiment Strategy.
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Contrarian Trading: Knowing When to go Against the Crowd and Make Money ��
, time: 8:59How to Trade against the Crowd? — Forex Columns — blogger.com
Straightforward trading against the crowd (against retail crowd, of course) is a long-time favorite strategy among professionals in all sorts of financial markets. It is like doing the opposite of what some clueless newbie trader would be doing Now the “Trading Against the Crowd” strategy is consciously used by no more than % of traders. It’s not so easy to make use of this strategy profitably so that all at once rush to study it. People are looking for easier ways out, but the strategy requires thinking, working and spending a lot of time Here are some trading strategies we use to trade against the forex trading crowd. In our Traits of Successful Traders series, we studied the results of 12 million real forex trades placed by FXCM
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