Nevhulaudzi rudzani
Member
It baffles me whenever I see traders trading against the trend.
Why would you want to do that?
Perhaps it’s an ego thing, to call market tops and bottoms. But here’s the thing…
If you’re serious about making money in this business, it’s far easier to trade with the trend — not against it.
Let me explain…
A trending market typically has 2 types of move; a trending move and retracement move.
The trending move – this is the stronger “leg” as it moves in the direction of the trend (and sometimes with strong momentum). This means it’s easy to stay in this type of trade as the market usually moves in your favor quickly.
The retracement move – this is the weaker “leg” as it moves against the direction of the trend. You can trade this type of move, but it’s more stressful as the market could quickly reverse against you.
Why would you want to do that?
Perhaps it’s an ego thing, to call market tops and bottoms. But here’s the thing…
If you’re serious about making money in this business, it’s far easier to trade with the trend — not against it.
Let me explain…
A trending market typically has 2 types of move; a trending move and retracement move.
The trending move – this is the stronger “leg” as it moves in the direction of the trend (and sometimes with strong momentum). This means it’s easy to stay in this type of trade as the market usually moves in your favor quickly.
The retracement move – this is the weaker “leg” as it moves against the direction of the trend. You can trade this type of move, but it’s more stressful as the market could quickly reverse against you.
