📈【Counter-Trend Trading vs Trend Following: The Sword and Shield of Futures Trading】📉

In the turbulent seas of the futures market, traders wield two swords:

🔶 Counter-Trend Trading

→ Definition: Taking opposite positions during a trend to capture price retracement opportunities

→ Like a surfing expert challenging the returning wave, looking for turning points in the RSI overbought/oversold zones

→ Advantage: Attractive risk-reward ratio; one successful trade can offset multiple losses

→ Risk: Like catching flying knives with bare hands, precise judgment of reversal signals is required

🔷 Trend Following

→ Definition: Opening positions in line with the market trend, being a loyal follower of the trend

→ Like a sailboat taking advantage of the east wind, adding positions when moving averages are in a bullish arrangement

→ Advantage: Higher win rate, suitable for clear and smooth trending markets

→ Risk: May become the "last baton holder" when encountering false breakouts

⚖️ Wise Choices:

• Range Market → Light positions for counter-trend (3% position for reversal)

• Unidirectional Market → Heavy positions to follow the trend (pyramid adding strategy)

• Top experts often excel in both: using trend following to catch big fish and counter-trend trading to net small shrimp

💡 Remember: There is no eternally correct direction, only eternally vigilant risk management. The true art of trading lies in understanding the rhythm of the market's breath.

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