Now, spotting a trend is easier said than done. But if you are able to spot
one and ride on it, you can potentially experience a lot of untold
benefits in your trading career.To get more news about WikiFX, you can visit wikifx news official website.
The art of trend following or trend spotting is something that is not new. Traders and investors have been doing it for years.
I have personally tried scalping, day trading, swing trading and position
trading. I prefer long term trading any day.1. It is a popular strategy
among professional traders
What if you bought gold when it dropped during the 2008 financial crisis and
then closed your eyes from that point onwards? You would have made a
handsome profit and return just from buying and holding.
One thing that is common among many retail traders is that they are very
technical focused and they are more inclined to get into day trading.
While day trading may be profitable for a small group of traders, theres no harm to look at what the big boys are doing.
Professional traders are mostly fundamentals focused and they make decisions based
on leading economic indicators like surveys, housing starts & M2
money supply rather than lagging economic indicators like inflation
rates & new home sales.
Unfortunately, retail traders are trading based on what the lagging economic indicators are telling them.
That is why they lose big time.
Professional traders hold their trades for months to ride the trend. While this method may not be
suitable for everyone, the big trends are where the big profits are
made.
2. Less stress, less headaches
One of my favourite aspects about holding a trade for weeks and months is that it can free
up time for me to do other things. Of course, I have to do the initial
research before I put on the trade.
But once I‘ve put on a position, I don’t really have to stare at the charts all day, which is
what a lot of beginner retail traders do.
With that said, Ive tried scalping and day trading when I first started out as a trader.
I find that I‘m mak ing more trades but yet my profits didn’t increase by
a significant amount. In fact, my attempt to scalp led to losses. Maybe
scalping just isnt for me.
