Forex trend following is the best way to make to make big profits in Forex trading yet, very few people do it and those that do, don’t do it correctly. Let’s look at how to profit from the big trends…
Look at a currency chart and what do you see?
Trends that last for weeks, months or even years and these long term trends will always occur because, currencies reflect the underlying economic cycle of the country they represent and these cycles last a long time.
Do most traders try and trade these trends?
No they don’t.
They believe the myth that trading shorter time spans, increases profitability and decreases risk and they try Forex scalping or day trading. What they don’t realize is that all short term movements are random, so stops get hit and if their lucky enough, to get a profit it’s a small one. Over time, they simply get wiped out as their profits never cover their huge number of losers.
Another reason people don’t follow long term trends, is they simply don’t have the discipline to hold a profit. As soon as they get a profit, they move their stop to close and get stopped out. What happens next? The trend continues, makes tens of thousands of dollars and their not in on the action.
The savvy trader knows that by locking into and holding long term trends, he can make more profits, with less risk and spend less time on his trading.
If you want to make the really big profits, with the least amount of effort, don’t trade the noise of the market! Learn to trade the long term trends, get the odds on your side and you will enjoy long term currency trading success.
The big trends will always be there and they make the biggest profits, so long term Forex trend following makes sense.