Should you trade against trend?

Vantagepointx

VantagepPointX Representative
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Trade with trend is easy as compared to trade against the trend. It is just like being a trend setter. You do something against the herd. There are basically two kinds of traders. One group follows the trend while others make their own path and move against the flow. Such rebellious traders tend to take risk. They enjoy the thrill of doing something different. Sometimes, it is easy and convenient to trade with flow and trend but sometimes it is exciting to trade with a different approach.

Why do traders trade against trend?​

It is a common question that pops up in the mind of newbies. Newbies often wonder why the traders tend to take risk and decide alternatively. As it is just easy to copy others and follow their footsteps, but sometimes it is not wise to do so. The traders often judge that the trend has already seen its peak and now it is about to change. Thus the experienced traders immediately change their game plan and decide to trade against the flow of trade. Obviously such a decision can anytime backfire and result in extreme loss. Still the adventurous take such a step to earn a handsome amount.

Should you prefer it?​

Here comes the major question that often disturbs every newbie. Should I trade against the trend? Frankly, it is a hard decision to make. You need to thoroughly analyze your capital and decide accordingly. Just because everyone is trading in a certain direction, it does not mean that the same decision will be profitable for you as well. Therefore instead of blindly following others, you need to set your path. There are thousands of examples of traders who became wealthy traders by buying a currency when its price was facing a downfall but selling the same currency at its strong position. If you think that you can handle that much stress and be patient with such ups and downs of the value of currency then trade against trend is you cup of tea. Otherwise you should think before you leap.

Read More: https://www.vantagepointx.com/trade-against-trend-be-a-trend-setter/
 
It can be that the trend is for example upward and the short-term price potential is moving in a downward direction and if you trade on M5 then you look more at the last price movement.
 
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