This YouTube video (Kardec Trader) features speaker Ali explaining why many counter-trend traders lose accounts: they often mistake a set of entry criteria for a full strategy. Ali argues traders must decide up front when not to take counter-trend trades, manage risk across many trades, and avoid piling into trades during momentum phases.
That's where a lot of people go wrong when they try and trade counter trend people call them strategies but actually they're just a set of entry criteria they're not actually a full strategy and that's what they end up doing. They'll hyper focus in on what's happening here. You might say well hang on a minute Ali, how do you know that it price won't do that? Well I don't but I'm going to make that decision up front and say no counter trend trades here price has got to prove itself or I'll do anything Whereas up here I'm willing to be that bit more risky trade by trade you might not actually notice any difference but when you've got 150, 200, 300 trades that tell you that when that market is in a more extended position more appropriate to go against the trend great. And it's the old adage people say oh trading against the trend is risky. Well it's only risky if you're piling in as price is in a momentum phase and I think.
