How to trade with the trend

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How to Trade with Trends
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Introduction

• If we divide the word Trade Following we easily
  understand what Trend Following is. Trends mean
  when price moves up and down and moves in a
  unique direction over a while. On the other hand
  following means to follow. In this way trend
  Following means simply to follow the movement of
  the price curve.

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• There is no fixed Trend following technique
  rather there are some sates of guidelines that
  help to understand the Trend. If two traders
  follow the same Trend Following strategy in the
  same market still might have distinct entries and
  exits but both of them can bring profit in both
  Bull markets and Bear markets.

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Principal, you need to follow

• There are few principals we need to follow while
  trading the trend such as you can buy high and
  sell low. Just follow the price to understand the
  trends. You can risk a fraction of your equity.
  You should not have any obdurate profit targets.

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It is better to trade in all markets. If you are
not a professional trend follower still you might
use this principle and find a positive result in
your trading. If the price looks overbought it
is better to stay out because it could reverse at
any point. The Above picture first shows the
overbought price but over time, price becomes
more overbought by another 1200 Pips. In this
picture, the price looks oversold so it is best
to stay out as it could reverse anytime.
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• From this, we can understand that which is high
  can go higher and on the other hand, which is low
  can go further lower. Trend follower can make a
  profit between these high and low situations.
• How you like to Trade with Trends As an
  Investor or Trader?
• What would you call yourself, Investor or
  traders? Most of the time people want to be
  investor not traders but if you look at the
  market most of the people who made fortune from
  this business are traders, not investors.

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• Most of the investors put their money in the
  business assuming that over the time it will
  grow. As the value of the investment increases
  the person increases his investment but if the
  market goes up it yields profits but when it goes
  down the investor incur a loss. If they are in
  the bull market they make a profit but if they
  are in the bearish market they lose the money.

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• Without knowledge of analysis, investor fears the
  bear market because they do not know how to
  survive in the bear market. Traders have definite
  plans for winning money. They do not care about
  the investment they just follow the trends and
  try to optimize their money.
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• Trend Followers Simply Follow the Price Trend
  When we try to forecast the market after a
  certain time, it starts to dominate

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• our judgments. As a result, this leads to serious
  trading flaws. Like we try to take loss because
  we want to be precisely right, we try to average
  our losses because we have a tendency to minimize
  our loss, when we incur a loss we have a tendency
  to take revenge on the market because we want to
  make good to our loss but rather doing all these
  things the best way is to follow the price.
• If we look at the above picture we can see
  resistance is continuously breaking with a series
  of higher laws so, in the long run, it shows an
  uptrend.

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• The above picture is just the opposite of the
  uptrends. If we look at the above picture support
  is contentiously broken with a series of lower
  highs and it shows downtrend in the long run.
• How do we know it is time to take away while we
  are following the trends?
• When you find that the price is maintaining a
  higher-low, where the resistance level is
  gradually breaking, it suggests an uptrend. In
  this situation you should look for long. When you
  see that the price is maintaining a lower-low
  where the support is gradually breaking then it
  provides the indication of downtrend. In this
  situation you should look for short.

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Do not try to probe how low or how high the
market can go because it doesnt even matter what
you or I think. It follows its own trends. Which
also means traders psychology affects the
movement of market.   So in one sentence
Trend following means make research on uptrend
and downtrend and try to understand the patterns
of price. Do not try to predict how high or low
the market can go, if the price is high look for
long if the price is low go for short. Whenever
you feel the market will reverse just take a note
on paper. After 30-40 attempts try to see how
accurate your guess was and you would surprise at
the result.
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The opportunity for trend followers?
The professional trend follower can trade in all
the markets. There are usually other sectors
where trend followers can trade while they are
working in the forex market. If the forex
business is dull there are a variety of other
markets in which we can trade like insides,
agriculture, bonds, etc. That is the reason why
trend followers always make profits. You alone
cannot trade all the market so it is low volatile
and safe. Now in the ordinary way when we look
at the directions of the trend or most of our
traders like to trade from predetermined levels
of supports and resistances. However
unfortunately sometimes there is not just the
opportunity to do that.
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Conclusion

• If you wait for those levels to take the shot you
  would have already missed the moves. People talk
  about supports and resistances but they dont
  look at the psychology behind it.
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• People do not try to understand how these types
  of trade work. So If you kind of understand how
  it works and if you have the sense of it, you
  will have confidence and your trade will improve.
• Sometimes if we use different indicators at a
  time and try to project the moves than it becomes
  a little bit complex than it is because
  sometimes less can be more.

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THANKS!