Forex strategy trading trend

An initial risk rule determines position size at time of entry.

Exactly how much to buy or sell is based on the size of the trading account and the volatility of the issue. Changes in price may lead to a gradual reduction or an increase of the initial trade. On the other hand, adverse price movements may lead to an exit for the entire trade.

One of the first rules of trend following is that price is the main concern. A trader need only be worried about what the market is doing, not what the market might do. The current price and only the price tells you what the market is doing.

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Another decisive factor of trend following is not the timing of the trade or the indicator, but rather the decision of how much to trade over the course of the trend. Cut losses is the rule. This means that during periods of higher market volatility, the trading size is reduced.

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During losing periods, positions are reduced and trade size is cut back. The main objective is to preserve capital until more positive price trends reappear.

Trend following should be systematic. Price and time are pivotal at all times.

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Forexstrategiesresources offers an great collection di trading systems trend following. Forex Trend Following Strategies.

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