Left side trading, contrarian is king

Countermarket trading has a forward-looking and predictive grasp of the market. The so-called seeing mountains is not mountains, and seeing water is not water. Homeopathic trading has a lag, seeing mountains is mountains, seeing water is water, only seeing the present, and cannot predict the long term. Countertrend trading greatly improves the efficiency of the use of funds, has a high wind-to-report ratio, and often eats up the entire market. Corresponding to homeopathic trading, the efficiency of capital use is low, and the wind-to-report ratio is low. When an entry signal is issued, the market has come a long way.

Contrary trading has the characteristics of low risk, and stop loss levels are relatively easy to set. Homeopathic trading, chasing up and selling down, often falls into the dilemma of slapping on both sides. In philosophy, we should abandon the traditional "homeopathic" outdated thinking, boldly accept the new idea of going against the trend and knowing the real situation.

In the analysis method, we must make bold assumptions, be careful to verify, and have the courage to predict against the market. For example, for the W bottom, according to the traditional homeopathic thinking, we usually enter the market after breaking through the neckline of the W bottom. At this time, the market has gone a long way, and we also face the risk of false breakthroughs. So why not change the perspective of thinking and enter the market at the right bottom of the W bottom? The risk is the same, but the wind report ratio cannot be the same.

Others, and so on.

Of course, when it comes to going against the trend, it's not about taking advantage of the trend. After successfully reaching the top or guessing the bottom, you have to take advantage of the trend, flying down 3,000 feet, suspected to be the galaxy falling nine days, professional left-hand trading, amateur right-hand trading.

Mastering counter-market trading is equivalent to finding the golden key to open the door to speculation. Abandon the mindset of following the trend and be a happy counter-market trader.