Trend following is actually very easy to learn and looks to carry out the moves that last anywhere from a week to more than a year. Of course, if you find yourself in the right trend, you can earn a lot of money, so let them look at the benefits:
Any free market offers trends
Monetary trends, as well as any other instrument of the free market, and you can trade with them in the same way, and you get bullish and bearish trends so that you can make money in any economic climate.
Trade the reality of price movement
Trend after the decision does not provide predictions & # 39; bowel & # 39; feelings or "shooting from the hip", and is not associated with the study of the financial press. A trend that follows the simple, requires compliance with simple rules that a & # 39 are on the & # 39 objective and allow to observe shifts in price momentum and become isolated in trends.
This brings huge profits
Next trend looks sophisticated absolute return. It does not shoot for the small & # 39; or the average profit, and during the turmoil on the financial markets, it can bring you big profits.
Take advantage of the human mass psychology
Value of the currency – this is only the sub & # 39; the objective expectations of traders, which are displayed on the & # 39 objective. Reactions of people in the market are always the same – the majority to follow the other and end up losing. People love to be social and calm, even if the group is wrong. If traders are one by one, they fall into the crowd hysteria, and that means losses. Trend following will always make money because most traders simply can not think for themselves.
You do not need to win a lot of traders to get more revenue
Trend following: defined exit rules to control losses in your account and make quick money-losing deal to preserve capital in your account. win loss coefficient is not important in the following trends. If you keep the trend for weeks or months, it will cover a lot of small losses. You can have more losses than profits, if the next trend, but the profit margin can sometimes be 10 – 20 times the size of your losers, so you can understand why you do not need to have a high ratio of winners and losers. to get more profit
After the big moves is the low cost of doing business
If you trade a lot, you lose a lot of transaction costs in relation to income, which you seek, but in trend following is not. With this long-term way to trade your account business a minimum and increases your total income.
If you want to get more profit, the good news – this method is easy to learn
You do not need any ingenious system or indicators to learn this method of trading, it can find any person, and you are sure to know how it worked since the market began. Thus, instead of having to struggle to earn money and make a lot of effort in terms of short-term, follow trends via price action and get a huge profit, as do professional traders.