Question 6—Trend vs. Counter-Trend Trading
Answer 4 Selection “Lower stress level” is incorrect.
Trend trades last longer than counter-trend moves, giving you more time to make trade-related decisions. They promise greater profits by covering longer distances. Commissions are lower in trend-following trades than in active swing trading. Still, it would be incorrect to expect a lower stress level. Riding a trend is like riding a bucking horse that tries to shake you off. Holding on to a trend-following trade requires a great deal of patience and self-assurance—a lot of mental work.
Get The New Sell and Sell Short: How to Take Profits, Cut Losses, and Benefit from Price Declines, Expanded Second Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
