This bad habit will cost you a lot in trading
This bad habit will cost you a lot in trading
As a trader, know that the market trend is not your enemy; it must be your friend. Avoid trading against the trend. Following the market trend is crucial when trading because it helps you align your trades with the overall direction of the market, increasing your chances of success. Trading against the trend is risky and can result in losses, as you’re fighting the market’s natural movement. By identifying and following the trend, you can enter trades with momentum on your side, ride the wave of price movement, and make more informed decisions.
Do you only trade according to the trend or you counter-trend trade from time to time?
Even also professional traders will never want to trade against market trend, it’s high risk trading and loss will confirm, so how dare a trader will go to trade against trend? in spot trading you can not successful trade if counter trend trading. I am following market trend specially in short term trading.
Trading includes different types. Trading with a long term trend or medium trend is what you meant. There is another trading type that does not care too much of market trend. It focuses on very short term trading but when a trader applies this trading type, he must zoom out to see the market trend in order to assess the market in general. If assessment gives some signals that market will have big movement soon, no matter up or down, he must step aside and keep watching the market. When a big market movement occurs, he can start his trading and enjoy market wild volatility after a big correction or crash.