Trend Following

Much money is trend following on foreign exchange markets but most traders are reluctant to do so and instead try and trade perks - but it is a fact, large profits are made based on trends long term. So why not follow the traders want big trends? There are two main reasons ...

They think they can earn more money day trading and fall to the huge industry that has grown sales in the short term day trading and scalping systems.

All systems come with a history of simulation and all you lose money.

Why?

It is clear - you can not predict what millions of traders will do in a few hours - all short term volatility is random and if you try to predict what will happen, you will lose.

The second reason is more complex.

He points to the fact that most traders can not accept large gains!

This may seem a paradox that all operators are foreign exchange to make money - but they have difficulties to accept the benefits, here's why:

Its obvious if you look at a picture that there are long-term trends that last for months or even years. This is simply because they reflect the economic cycle the country they represent and the last cycles of those periods.

Now, if you can lock into and maintain these trends, you can make huge profits but most traders do not have the discipline to do so.

Why?

Because the markets are volatile and a typical scenario unfolds as follows.

A trader from a trade and is happy to get a benefit, but more profit becomes, the more he is tempted to take it. Swings in equity to start eating his opening equity and perhaps his nerves get the better of him and he takes a marginal profit - even though he knows that the trend will probably continue.

What happens next?

The trend is on stilts $ 10, $ 20,000 or more and it is not in but he knew the trend would continue! It simply does not have the discipline or courage of his convictions.

There is no doubt that if you lock in the big trends that you can make huge profits.

I know traders who trade at least once a month but make triple digit gains, holding positions for weeks or months.

They know you have to attend short-term dips in equity - but if you have the right forex trend following system that does not matter - you have eyes on bigger prizes mega.

Big profits are made following the trend of currencies, but traders have very little confidence and discipline to do, even if it's the best way to trade and can make enormous profits in the longer term.

Big profits are there to be trend following forex longer-term to short-term trading and forget to look at longer-term!