Why trading with the trend is profitable?
July 27, 2018 at 11:13 pm - Views: 52 #736
Vicky LeanParticipant1 Prestige
Traders at some point in their career have heard this universal line. It is like water that is all around us but we do not feel it. The trend is an important part of making our plan and designing our strategy. You will find that most traders wait for the trend to favor their plan. When the time comes, they simply place their trades and make a profit. Trading with the trend is profitable for many reasons. If you know them all, you will understand why fundamental trading style is the best. It is risk-free and also it focuses on the price movements that are important for growing your money. This article will tell you why trading with the trend is profitable in Forex industry for all types of traders.
Limits the number of losing trades
Do you know the majority of the time the false spikes occurs in favor of the market trend? So if you trade with the market trend chances are very high you will not lose money from the false spikes. But things are not limited to the false spikes. The first thing that you need to learn is to identify the prevailing trend. In fact, the professional Singaporean traders will always suggest you trade in favor of the trend to limit the number of losing trades. But this doesn’t mean you will be always winning trades by trading with the trend. At times you will have to lose money due to the change of market trend.
Considering all the variables, the experienced traders still consider trading CFDs in favor of the trend as the safest way. You need to be position trader to maximize your profit while riding the trend. Those who trade the lower time frame should be very careful about the risk factors since false spikes are more prominent in the lower time frame. Unless you have extensive experience, you should never trade the lower time frame setups.
You trade alongside with the money
The best thing that happened to people when they trade with the trend is they place their trade at the perfect time. The most important thing in this industry is to know about the price trends. Not many people can do that because they all analyze the price movements form their own minds. They make some guesses and plan their strategy and that is how most people lose. When you are trading with the trend, you are taking the right decision by placing your trade where the money is going. One difference between a successful trader and losing trader is the successful trader never place trade until there is money. If the market is without money, they wait for hours whereas the losing traders try to take every opportunity they can have and place the trades. If you try to eat from an empty you can never be satisfied because there is no food. It is as simple as that and dominant trend can take you where the money is. Wait for the trend to appear and trade the market.
It is when the money is moving
Another reason you should trade with the trend, the trend tells you when the money is moving to which traders. For example, if you look at the chart and see the prices are going up, you instantly know who is going to make a profit. If you trade when there are no movements and there is no trend that can favor the traders, it will be hard for you to make money.
The money lies in the trend
It is the most important information you need to know. The money never lies in your successful planning or your wonderful strategy. It is all hidden in the trend that is only profitable when it matches with the trend. If you try to go against the trend, you will lose your money.
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