Forex trend trading can be one of the most profitable ways of trading forex. We always heard people saying that “trend is always your friend” or “never ever trade against the trend”. I can tell you that it is very true. Please let me explain more.
When a currency is trending, the price goes in one direction most of the time. If you are able to catch the trend, you can easily predict the movement and catch the starting point of the price movement. If you are good in trend trading method using with just one or two simple indicators or even none of them, you can purely predict a price movement from the chart and actually making profitable trades.
When a currency is trending, the price does not always move in favor of the trend although it does most of the time. There are times where the price will retrace a little once a while to get some momentum before carry on trending. Never ever trade with these little retrace periods as you are putting yourselves in a dangerous spot. These periods are hard to predict and you also will not gain that much as compared to trading along side with the trend. Never be greedy and attempt to trade these retraces just because you don’t want to miss any chance. You are just taking in more risks and could lose whatever amount you have won. That is why we call this method forex trend trading. Trade with the trend, not against it.
Forex trend trading is a very popular method used by many professionals, intermediates and even novice traders. It is because this method is simple to pick up and use. Another reason is that most of the time currencies are trending, you will have lots of trading chances which in turn you will have more profits.
Quite a few professionals and intermediate traders using this forex trend trading methods, has being modifying this strategy to work best for them.
They add in some indicators to their charts to filter out the noises s that their trades can be made more accurately.
If you are starting to learn trading in forex, forex trend trading can be the most suitable and easiest method to pick up and learn. You will not need to learn complicated chart readings and indicators reading to start. That is the main advantage over to most of the strategies.