Health Fitness

Following Trends In Forex – Most Traders Don’t Do It, But You Should, You Make Huge Profits!

Trend following is actually very easy to learn and seeks to sustain moves that last anywhere from a week to over a year. Of course, if you get into the right trends, you can make a lot of money, so let’s look at the advantages:

Any free market offers trends

Currencies trend, just like any other free market instrument, and they can all trade the same way and you get up and down trends so you can make money in any economic climate.

Trade with the reality of price movement

Trend following decision making does not involve prediction, ‘hunches’ or ‘shooting from the hip’ and it also does not involve studying the financial press. Simple trend following requires you to follow a simple set of rules that are objective and allow you to see changes in price momentum and lock onto trends.

He makes huge profits

Trend following looks for compounded absolute returns. It does not point to ‘small’. or average profits and in times of turbulence in the financial markets, it can generate big profits.

Leverage Mass Human Psychology

The price of a currency is just subjective expectations of traders reflected objectively. People’s reactions to markets are always the same: most follow and end up losing. Humans like to be social and conform, even if the group is bad. When traders follow each other, they get caught up in the hysteria of the crowd and that means losses. Trend following will always make money because most traders just can’t think for themselves.

You don’t need to win a lot of traders to make big profits

Trend following, you have defined exit rules to control losses in your account and when you quickly take losing trades to preserve equity in your account. The win-loss ratio doesn’t matter in trend following. If you hold a trend for weeks or months, you will cover a lot of small losses. You may have more losses than wins when you trend, but the size of your wins can sometimes be 10-20 times the size of your losers, so you can see why you don’t need to have a high win-loss ratio to make big profits

Following big moves means low cost of doing business

If you trade a lot on the day, you lose a lot in transaction costs relative to the profit you are looking for, but in trend following this is not the case. With this long-term trading method, your cost of doing business is minimal and your overall profits are increased.

If you want to make big profits, the good news is that this method is easy to learn.

You don’t need any fancy systems or indicators to learn this trading method, anyone can learn it, plus you have the confidence of knowing it worked since the market began. So instead of struggling to make money and putting in a lot of effort in short-term time frames, follow the trends through price action and make big profits like professional traders do.

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