Wiederholungsgeschäfte

Wiederholungsgeschäfte, also known as "repetition trades" or "repeats," are a specific type of trading strategy used in the financial markets. This strategy involves entering into a trade in the same direction as the previous trade, regardless of whether the previous trade was profitable or not. The underlying assumption is that the market trend will continue in the same direction.

The concept of Wiederholungsgeschäfte is often associated with the German term "Wiederholungsgeist," which translates to "repetition spirit." This term was popularized by the German investor and author Hans W. Gertz, who advocated for this trading strategy in his book "Der Wiederholungsgeist im Wertpapierhandel" (The Repetition Spirit in Securities Trading).

Proponents of Wiederholungsgeschäfte argue that it can help traders avoid the emotional decision-making that often leads to poor trading decisions. By following a simple rule of always entering a trade in the same direction as the previous one, traders can reduce the impact of fear and greed on their trading.

However, the strategy also has its critics. Some argue that Wiederholungsgeschäfte can lead to excessive risk-taking, as traders may continue to enter trades even when the market conditions have changed. Additionally, the strategy may not be suitable for all types of markets or trading styles.

In conclusion, Wiederholungsgeschäfte is a trading strategy that involves entering into a trade in the same direction as the previous trade. While it has its proponents and critics, it remains a popular strategy among some traders due to its simplicity and potential to reduce emotional decision-making. As with any trading strategy, it is important for traders to thoroughly understand the risks and benefits before implementing it.