If you’re a trader, it is important to identify the primary trend and stick with it. If you see a downtrend, you may feel the need to buy a dip and hope for a bounce. However, counter-trend trading, or trading against the trend, can be extremely stressful. You may have a bias about a stock, whether it is an up or down day, or bounce day. It is important to understand the type of market you are trading forex in. You must ask yourself if you are in a trending or ranging market before you enter forex trading.
Trades with the trend are extremely important. If you trade in a range market, the odds are that your trade will be shorter than if it were in a trending one.
How to get in on a trend
It is not easy to spot a trend and buy or sell. You can still make some winning trades if you wait for the trend to change to nice areas. Then, jump on the next wave and ride it as long as you can. The novice price action trader may make the mistake of believing they missed out, and will take a trade. They should have waited patiently for the market to turn around so they could get on board. You will find that Forex pairs don’t go up or down, and every pair will eventually allow you to trade. Be patient.
Money Classic Research is an expert in providing forex trading tips and advice.
