Following the Forex Trends: The Major Advantages and Disadvantages



Though forex trend, as easy as it sounds may be difficult to study if you don't know how price moves. That is the basis of making money on the internet, trading forex especially trading with price action. All successful traders know the importance of a trending market. In this article, I will quickly analyze what I see as major advantages and disadvantages of forex trend so that it can help you in your trading.

First of all, the major advantages I found in trending market are that there are lots of traders who trade without the use of a single indicator. I have seen a veteran who trade only on trending candle sticks pattern. He knows when the market is flat, when it is trending up or down. Those that are using it successfully don't cluster their platforms with many indicators that will always confuse them. Before the existence of internet, many good traders that trade on stocks uses this pattern and it always work for them. Another advantage of trading with a trending market is that a lot of traders react to new trend. The higher the number of traders that can spot trend, the higher the winning rates of those who follow them. Many big players like financial institutions and banks create the trend, they use it to make more money and many retail traders join them. Even if you make a mistake following the trend, the market has a way of correcting you and getting you back to the market positively.

But one of the major disadvantages of a trending market is to know when to enter a market or when to get out. That is why many lagging indicators come in. Many so called who are not a programmer are now writing programs and EA that they never use to trade but still sell them to the baby traders. Even using simple fibonacci tools with just candle sticks pattern can change your trading account positively.

You may need to know what can trigger the price negatively and positively. This is where many traders get it wrong. Many traders lose not because they don't know the trend, but they don't know how to put their stop loss and take profit properly.

But the good news is that SPAT Forex trading strategies is one of the best strategies out there with less indicators and software that automate price action to make huge pips monthly. It filters the trend easily there by reducing your loss rate. It is based on momentum, market strength, price action and trend. It has very high winning rates.

Komentar

Posting Komentar

Postingan populer dari blog ini

Successful Forex Trading - How to Generate 10 Pips a Day

Gambar
A common approach to forex trading is to play with small stakes and target large price moves in the region of 50-200 pips. Indeed I trade this way myself using my main 4 hour trading system. However an alternative approach is to increase your stakes and look for much smaller price moves. That way you only need to find one decent trade per day if it generates around 10 pips, for instance. It's not that easy to do, but you can achieve this target if you employ a sound trading strategy. The best approach is to concentrate only on the major currency pairs (such as the GBP/USD, EUR/USD, USD/JPY, EUR/GBP and GBP/JPY, etc) and look for pairs that are trending strongly upwards or downwards during a given trading session. You simply look at say the 1 hour chart of all of the major pairs and see which ones are moving strongly upwards or downwards. Then once you've done that you can use the shorter time frames to get a good entry point. The best strategy is to find out which currency p...
Baca selengkapnya

Combining Technical and Fundamental Trading Methods For Success

Gambar
So far, in the previous two articles, we looked at each of the two systems used to analyze currency value in forex currency pairs when traders are assessing trade positions. Most traders see themselves as one type of trader or the other, but successful traders use both methods to varying degree with a bias towards their favorite. Both of these approaches to market forecasting attempt to solve the same problem; to determine the direction prices are likely to move. They just approach the problem from different directions - the technical trading method focuses more on the value history and uses the current value of a currency in a pair referenced again historical trading ranges and value to give an indication of the likely change and new value that a currency will have in the near future. Currency charting in graphical format is the primary tool. Fundamental trading looks primarily at the primary real market conditions that should determine a currency value now and overlays that assess...
Baca selengkapnya

Bill Poulos - Why Beginner Forex Traders Should Know Who He Is

Gambar
Bill Poulos is an accomplished merchant and venture instructor with more than 30 years of experience. He has distributed different courses in Forex strategies customized to the exceptionally advanced dealer. Since Bill has just been open to the propelled broker who could bear to pay a large number of dollars a year to get to his exchanging techniques and privileged insights, you might not have known about him. Bill Poulos' Forex Nitty Gritty is a course that gives a particular bit by bit exchanging technique that instructs you in various economic situation situations. What's more, Bill gives insider mysteries of the business and normal exchanging entanglements to maintain a strategic distance from that solitary an accomplished broker would know. This is the first run through ever he has turned out with a section level course for novice merchants! This is a remarkable chance to gain from the top educators and maintain a strategic distance from the tricks and deficient items o...
Baca selengkapnya