What is trend trading?
Trend trading is a trading strategy that makes buy and sell decisions based on market trends.
1. Definition: Trend trading is waiting for a confirmed trend to form before opening a position, which can be achieved by going long when prices rise or shorting when prices fall.
2. Features: The core of trend trading is "following the trend", that is, trading in the main direction of the market. This strategy believes that once the market forms a clear trend, this trend may continue for a period of time, and profits can be made by following the trend.
3. Time structure: Trend trading can be carried out in different time frames, including short-term trading, swing trading, and investment in longer time frames. Regardless of the time frame, trend trading aims to accumulate the odds in our favor.
4. Risk control: Although trend trading can increase the possibility of profit, it also comes with certain risks. Therefore, we all set stop loss points to limit potential losses and ensure that the trading strategy is consistent with the risk management plan.
In general, trend trading is a trading strategy that makes buy and sell decisions based on market trends. It emphasizes the principle of "following the trend" and uses various technical analysis tools to judge market trends.
If anyone is confused by market fluctuations, doesn’t know how to deal with being trapped, or feels misled during operations, I am Brother Jiu, welcome to communicate
