We’ve written extensively on trend trading in previous blog posts, but many readers still struggle to grasp the full process from A to Z. In this post we will draw on previous lessons, in order to deploy an organized roadmap of principles for trading trends.
Effective Principles for Trading Trends
- Start by having an awareness of the fundamentals behind current market moves. Don’t sift through charts without focus. Instead, let the fundamental picture direct your efforts. We wrote about this here & here.
- Create a watchlist of instruments, seeking to maximize value wherever possible. We wrote about that here.
- Map out the charts on your watchlist, with a top-down process explained here.
- Decide your position size. We explained two position sizing models here and here.
- Implement your trades using market types as explained here. Remember to have a clear way of discerning retracements from reversals.
- Manage your trades based on market types as explained here.
- If you start facing a losing position, here’s how to manage it.
With this step-by-step list of actions to take, you should have no trouble becoming consistent in trading trends in any market.
About the Author
Justin is a Forex trader and Coach. He is co-owner of www.fxrenew.com, a provider of Forex signals from ex-bank and hedge fund traders (get a free trial), or get FREE access to the Advanced Forex Course for Smart Traders. If you like his writing you can subscribe to the newsletter for free.
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