What is trend trading or trend-following?
Hello friends lets understand. Trend trading because trend is your friend. What is trend trading or trend-following? Trend trading is defined as a market trading strategy, involving the use of various technical indicators that help identify the market momentum direction. The strategy is founded on the premise that the trading market has an element of predictability, which traders can analyze and use to their advantage. It is based on the idea that if traders ride the trend, then they can avoid losses. As such, they buy securities before the price goes up and sell them before the price goes down. Trend followers typically implement proper risk management strategies before investing. Such traders do not aim to predict or forecast a trend; they believe in following the existing trends and keeping an eye for any emerging trends in the market. Identifying trends – types and examples Trend trading strategies can help traders identify trends so early in a trade, that they can exi