Lesson 2 - "Finding A Friend In The Trend" The trend is where the big money is made in trading. This lesson also covers false breakouts and how you can avoid them.Understanding trend is the single biggest element to successful trading. I've done quite well in years where I have kept on track of the major trend. In other years, where I was not so attuned to the market .. it was a disaster.
One thing that has shocked me in the world of forex trading is the obsession with counter-trend trading, playing reversals, tring to pick tops and bottoms, ostensibly acting as if you are smarter than the market. In some of the analysis webpages, we're talking major players, brokers, people with thousand of clients, this seems to be all that they do. It's become one filter I use to judge whether I want to allow people into my Twitter on onto my reading list.
Oh they'll do great during the period when the trend is changing or indeterminate. And you'll feel like crap when the whole market changes on you (Like I did in that last Euro trade.) But the rest of the time, they're fighting against the tide, always seeking a trade. Whereas, the trend trader will take a lump and then lie in wait for the next big thing.