An Introduction to Forex Trend Following
Forex Trend Following V Day Trading
Below you will find the benefits of Forex trend following and why its the choice of pro traders but first, lets look at why so many retail traders choose day trading.
Reality V Fantasy
The fantasy of day trading is promoted by brokers, robot sellers as a great way to make money but its not - it's a great way to lose your trading account quickly. You are supposed to believe that in minutes or hours you can predict where prices go and the idea is markets are predictable with accuracy in these short term time frames but there not – Humans are NOT predictable and in short time periods anything can happen and does. In a recent study, it was concluded that day traders before getting wiped out, earned less than a person working on minimum wage in Mcdonald's.
People who day trade think its possible to get 90% of their trades right and have low downside volatility to but this is not the reality of trading. The amount of trading signals you make money on versus the ones you lose on doesn't matter - its the difference between profits and losses which is important. Most of the world's top traders lose more of their trades than they win but make huge gains on their trading accounts because, their profits are so much bigger than their loses. Who care about perfection when you can make money?
Brokers want you to day trade because they make money from dealing spreads and commissions – Period. Robot and Expert Advisor sellers, are simply promoting a message to appeal to people who want to get rich easily but the story has no basis in reality.
Trend Following V Day Trading
Odds of Success
As we have just mentioned, short term price swings are impossible to predict and you will lose. If however you use longer term time frames the odds of success increase and you can trade for profit
Time on Your Trading
Day traders spend a lot of time tick watching throughout the day, the trend follower probably only looks once or twice a day spends far less time on his trading plan but makes far more money.
The day trader soon losses because the odds are against him – while the trend follower has the opportunity to make huge gains spending just 30 minutes a day trading the markets:
Fact: The Strategy of Choice for Pro Traders
The vast majority of the worlds top traders are long term trend followers so, you should learn this method to and get on the road to currency trading success. Long term trend following is easy to learn, have confidence in and also you can still keep you day job, as it only takes 30 minutes or so per day, to trade a trend following strategy.
Catch ALL The Big Trends from the Big Moves
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