If you want to make money forex trading, you need to learn the art of trend following. This article will tell you the best type of trends for you to follow - in light of your trading personality and the profit potential of each method.
There are effectively three common types of trend following:
Forex day trading, swing trading and long term trend following lets look at all three
Forex Day Trading
The most popular and simply a guaranteed way to lose money - all short term volatility is random making support and resistance meaningless.
Forex system - How to Day trade and swing trade forex::
it helps them identify the trend so that they can be trading in the right direction. it as I have plenty of traders doing well with the Forex Profits
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Its sounds good in theory and it makes a good story for vendors.
They sell systems that are based on worthless, hypothetical simulations which have never been traded. They dont have a real track record and the reason is day trading simply doesnt work.
Forex Lessons from Shanghai bc - For Currency Trading In The Foreign ::
when saying it but so difficult when doing it affecting real money in a first tentative step into the right direction with no guarantee to any success.
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Trend Trading to Win::
ive been following it for a few weeks now & i love the format. Hi Paul, Thanks for doing such a good teaching job yesterday at the seminar in North Haven.
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I find it baffling that intelligent people try it and think they can in a few hours tell what a huge mass of millions of traders will do - Avoid or lose!
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By far the most popular way of trading for novice traders but If you like action and are not patient then this is the method for you. Forex Trend Following
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Forex Long Term Trend Following
The long term trends last for months or years as they reflect the economic health of the country and they are extremely lucrative if you have the patience and discipline to follow them.
The problem is many traders find it hard to follow a long term trend when volatility can eat into open profit sometimes by thousands a day. Its rewarding, but its tough, even for experienced traders - but if you have the mental discipline and patience to do it, its the most lucrative form of forex trend following.
Forex Swing Trading
This is taking smaller movements with the major trends.
You are aiming to take advantage of moves that can last for a few days to a week or two. This method is perhaps the easiest for novice traders.
Its simple, there is plenty going on and you are right or wrong quickly which means that its not so mentally demanding.
Of the three methods I would say that novice traders should cut their teeth on swing trading and progress to longer term trend following later if they wish.
If you are long term trend following or your forex swing trading you can learn a simple system that can be effective in about a week.
All you need to do is understand support and resistance and use a few momentum indicators to help you enter your trades - and thats it. Combine the above with sensible money management and your all set.
How much can you make?
If you are long term trend following if you can make 50 - 60% of the major trends you would be doing well and be very rich. On forex swing trading your aim should be up to 70% of the move.
Whichever you do you dont predict - use price momentum indicators and the price to time your entry and only trade on the reality of the price you see.
The fact is there are trends all the time you can trade for profit - but most traders like to argue with the price, predict or second guess it and lose.
If you dont and just focus on trading the reality of price as it is, you could enjoy tremendous currency trading success.
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Forex Trend Following - Doing it the Right Way for Success