Get to know the Follow Trend Strategy

monarchcb.com - Trend Follow is one of the most widely used trading styles, both by current and professional traders. A distinctive characteristic of this trading style is the opening of an instruction in the form of a pending stop.

In carrying out forex trading activities, traders have the independence to choose a trading style that suits their personality. However, for newcomers usually the trading style used is the type commonly used by most traders, namely the trend following strategy.

One of the most common trading methods used by current or professional traders is trend following. Follow the trend is a way of trading by exploring the trend goals to ensure the execution of buying and selling.

Through this method, traders can also see price patterns that are being created and compare them with previous styles. The trend-following trading style is one of the methods used by traders to make profits according to the positions of most market players.

One method that is widely used is to wait for the price to hold the trend line to execute the instructions.

This method requires markers to read signs, such as Moving Averages, MACD, RSI, and OBV.

Guide to being a trend follower

As a surefire way to make profits because trends are always there anywhere and anytime.

1. Look at the diagrams and the introduction of price goals

As the name implies, trend followers lead to buying executions when an uptrend, and leads to selling when a downtrend. Meanwhile, when there is no trend it is recommended not to trade.

2. Analyze trends using technical markers

Traders must pay attention to and have technical markers that can spot signs of a real trend to confirm trading activities are in the direction of the trend. You should monitor the movement of the trend first and then carry out the execution after really believing in the strategies and methods used.

3. Not stuck on a single strategy principle

Most importantly for long-term investment, the best strategy is to buy high, sell higher. Many traders believe that the most common and meaningful method is to buy small and sell big. They look for the duration at which the market has bottomed out, buy, then trade once the price has gone up. Basically it's a good idea, but efficiently it's much more difficult and less realistic.

4. With the intention of observation and not easy to explore other people's data

When carrying out trend-following trades, traders cannot observe intraday price surge analysis which deals with short-term information. On the other hand, traders must have the intention that price movements match the current trend.

5. Loss is a natural thing

Having a description and understanding that loss is a natural thing in trading is very important. Traders must be able to move on from mistakes, then practice, and it is forbidden to give up in trading activities. Whenever possible, either profit or loss must be planned for yourself and the trader's psychology.