moonchild
VIP Contributor
Counter trading basically is trading against the trend, for example if we're in an uptrend and market is making a series of higher highs and higher lows, normally you should be looking for a buy in those market when the market dip below the latest impulsive moves, but instead of doing that counter trend traders will decide to short the market against retracements.
Most traders that indulge in counter trading are mostly scalpers looking to make one or two pips in the market and as a result have to capitalize on every move the market makes to make money.
Counter trading is like most type of trading, it has its own upside and downside, because it's not fun together caught in a sell when the market is buying, it can move impulsively against you and make you lose money without, or you get trapped in a range with a floating loss.
So you should always pay attention to the kind of trend you counter trend so that it wouldn't end up hurting your P/L
Most traders that indulge in counter trading are mostly scalpers looking to make one or two pips in the market and as a result have to capitalize on every move the market makes to make money.
Counter trading is like most type of trading, it has its own upside and downside, because it's not fun together caught in a sell when the market is buying, it can move impulsively against you and make you lose money without, or you get trapped in a range with a floating loss.
So you should always pay attention to the kind of trend you counter trend so that it wouldn't end up hurting your P/L
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