Trending tracking is really very easy to learn and seems to keep movements lasting between a week and more than a year. Of course, if you get into the right trends, you can make a lot of money, so let’s look at the benefits:
Any free market offers trends
Currencies are trending and so is any other free market instrument and they can all be traded the same way and you get up and down trends so that you can make money in any economic environment.
Trade the reality of the price movement
Decision-making that follows the trend does not involve prediction, “instinct” feelings or “shooting from the hip” nor does it involve studying the financial press. Following the simple trend requires you to follow a set of simple rules that are objective and allow you to see changes in price momentum and look at trends.
It has great benefits
Trend tracking aims for compound absolute returns. Don’t shoot for “small.” or medium profits and in times of convulsions in the financial markets, you can make big profits.
Take advantage of mass human psychology
A currency price are only subjective expectations of traders objectively reflected. People’s reactions to the markets always remain the same: most They follow each other and end up losing. Humans like to be social and conform, even if the group is wrong. When traders follow one another, they get caught up in the hysteria of the crowd and that means losses. Trend tracking will always make you money because most marketers just can’t think for themselves.
You don’t need to win many traders to make big profits
Following the trend, you have defined exit rules to control your account losses and, when losses are quickly achieved, to preserve your account capital. The ratio of wins and losses does not matter in the following trend. If you keep a trend for a week or months, it will cover a lot of small losses. You may have more losses than profits when you follow the trend, but the size of your profits can sometimes be 10 to 20 times the size of the losers, so you can see why you don’t need to have a high proportion of winners and losers to to win. great benefits
Following big moves means a low cost of doing business
If you trade a lot on a day-to-day basis, you lose a lot in transaction costs relative to the profit we seek, but trend tracking is not. With this long-term trading method, your cost of doing business is minimal and increases your overall profits.
If you want to reap great benefits, the good news is that this method is easy to learn
You don’t need any fantastic system or indicator to learn this method of trading, anyone can learn, and you also have the confidence to know that it has worked since the market started. So instead of struggling to make money and make a lot of effort in the short term, follow the trends through price action and make big profits as professional traders do.