Insurances.net
insurances.net » Auto Insurance » The Truth About Trend Following You'll Be Glad You Finally Know
Auto Insurance Life Insurance Family Insurance Health Insurance Travel Insurance Mortgage Insurance Buying Insurance Accident Insurance Housing Insurance Personal Insurance Medical Insurance Property Insurance Mobile Insurance Internet Insurance Pregnant Insurance Dental Insurance Children Insurance Baby Insurance Employee Insurance Liability Insurance Pet Insurance Boat Insurance Cancer Insurance Insurance Quotes Others
]

The Truth About Trend Following You'll Be Glad You Finally Know

The Truth About Trend Following You'll Be Glad You Finally Know

Many people are now escaping the confines of working for an employer by trading for

themselves from home on the Internet due to the freedom this gives them in terms of time and money.

Having tried intraday trading initially many traders later come around to trying trend following due to the huge gains to be made and other benefits with this approach.

The goal of this article is to explain what the essence of trend following is and to reveal its pros and cons in terms of how easy it is to be profitable and in fact to make huge gains, taking into account any potential drawdowns.

How you'll finally never worry about brokerage costs again is also explained and the degree of stress compared to shorter term trading is also revealed. Let's get started.The Truth About Trend Following You'll Be Glad You Finally Know


Essentially trend followers trade on the belief that prices in up trends will continue to go up and prices in down trends will continue to fall. This may seem strange but please bare in mind that the worlds best and therefore richest traders include trend followers. Next let's look at how easy it is to be profitable.

Well the first thing to say is that if you have the right proven and simple system with clear trade entry, trade exit and money management rules you should be profitable if you trade with level-headed discipline.

At the outset you need to know that the ratio of successful trades to unsuccessful trades is lower with trend following than with some other types of trading such as swing trading. However, it's very important to realise that winners can be huge when trend following, running for years and far, far outweighing any drawdowns. So what does this mean for us as traders?

Well you don't need to have a lot of initial trading capital, especially if you use a spread trading account as these companies have zero commissions for life and accept tiny trades. Traditional brokerages on the other hand generally use standard 'lot' or mini-lot sizes which are bigger than the smallest trades placed at spread trading companies.

Why your traditional broker will not promote the benefits of trend following:

As well as spread betting or spread trading accounts being ideal if you're a trend follower instead of using a traditional broker, even if you still decide to use a traditional broker when trend following, you'll be paying them less brokerage fees obviously due to making less trades.

When trend following it's important not to place trades that are too large for your account. So trades of five to ten percent of your entire trading capital is about right.

But what needs to be said about how stressful it is?

Well as you may have guessed, trend following is far less stressful than shorter term trading because you place fewer trades and it's easier than predicting all the choppy, short term noise and fluctuations in a market's prices.

To summarise, trend following is how the big players trade, at least for some of their trades. My advice is to trade with the trend and trade with the big players.

by: Philip Birchley
BMW's Up-coming Models in 2010 DIY projects 'need workers with approved electrical qualifications' Why Using the Best Pick Up Lines Won't Get You Laid Tonight Easy Car Transport with Car Shipping Bmw Nj Dealer Anticipates Debut Of 2010s Second Bmw Activehybrid He gets angry and he kicks 'em out! Modern Auto Repair Shops Offer Much More Than Vehicle Body Repairs Understanding "title Seasoning" And How It Affects Fha Financing How to look at "Corporate Governance" - Indian Corporate Law A Closer Look At Automotive Engine Parts Tips and Tricks for downloading Photo's from your Apple iPhone How to check out someones MySpace Profile even if it's set to Private Extra Large Please - Uk's Spending On Takeaway Has Rocketed!
Write post print Bupa HealthPlus Insurance
www.insurances.net guest:  register | login | search IP(3.226.72.118) District Of Columbia / Washington Processed in 0.016041 second(s), 6 queries , Gzip enabled debug code: 28 , 3205, 952,
The Truth About Trend Following You'll Be Glad You Finally Know Washington