Forex Trend Following Catching the Triple Digit Profit Opportunities

Most traders focus on trying to catch short term moves as they think its lower risk and higher reward but the best risk to reward is hitting and holding the big trends and its easy to make money from Forex trend following, if you keep these points in mind...

Take a look at a Forex chart and you will see Forex trends that last for many months or in some instances years and the reason they will always occur is currencies reflect the underlying health of the economy and these economic trends last a long time. Most new traders however ignore these big trends and want trade short term and day trade or scalp but this is doomed to failure - Why?

Because all short term movements are random and because they are its like flipping a coin what appears low risk trading is actually high risk trading. You can't get the odds on your side short term but you can long term.

Here are some points to keep in mind, to make a success of long term Forex trend following.

1. Trade Less Make More

You need patience and you only need to trade a few times a year to make big triple digit gains. You don't get rewarded for trading often - you get rewarded for hitting and holding high odds set ups.

2. Use Breakouts

Most new trends start from new market lows or highs and buying these breaks, can get you in and keep you in all the big long term trends.

Look to buy breaks of levels the market feels are important and if everyone disagrees with the break, the chances are it's a good one.

3. Milking the Trend

Many forex traders cannot accept big profits and as soon as they have one, they want to protect or take it - this is WRONG!

Move your stop too quickly and you will be bumped out of the trade early and you of course want to hold long term. Keep your stop back and trail it outside of random volatility. You will give a bit back at the end - but always keep in mind:

If you had 50% of every big trend you would be very rich!

To make it easier to hold long term trends you can try the 50 - 50 split.

I use this all the time and the concept is simple.

When a trend surges in your favour and becomes overbought or oversold, you tuck 50% in the bank and leave 50% in the market. You then wait, for a rally against you, then put the 50% back in and you keep banking and re-entering.

This smoothes the equity curve and makes holding long term trends much easier, as you are being pro active in managing the trade and it makes it psychologically easier.

An Easy Time Efficient Way to Make Big Profits

Forex trend following is time efficient and you only need watch the markets a couple of times a day at most, you also don't have to trade often to make triple digit annual gains.

If you want to make the really big moves, you need to hit the big long term trends; they will always occur and you can trade them for profit and enjoy currency trading success.