Trade ‘In Position’
waiting-to-strikeIn this section I would like to talk about trending market structures. Most of us know the old adage ‘the trend is our friend’ – so why are most traders losing money during these money making conditions?
This can be boiled down to a few key reasons, but one of the biggest in my opinion is traders are constantly entering the trend ‘out of position’. We’ve still got to keep Forex trading as simple as possible and respect the basic principles of trading, and one of those is to ‘buy low, sell high’.
I see a lot of traders ‘buying high’ in an uptrend, and ‘selling low’ in a downtrend. This can be a very high risk move, and they soon find out how unfriendly the trend becomes.
It will become evident that timing is important for trend entry, in order to buy low, and sell high – you need to take advantage of counter trend retracements.