Long-Term Trend Trading - The Time Advantage!

fx trader, forex, strategy, Long-Term Trend Trading, Long-Term, Trend, Trading

“Time” is a paradox. It is something we all want plenty more of yet something we do not, at times, fully appreciate. This is very true for those who enter the trading world looking for quick riches. Getting properly educated is regularly a distant thought until faced with the catastrophic result of a blown trading account, usually in only a handful of trades with life-savings eaten up into the vast money pot of the market. The goal was to take out a fair chunk of the $5 trillion on offer daily, not add to it!

Embracing Time

Long-term trend trading has a different philosophy. Time is integral to our approach as traders. Anyone can scalp for 10 pips and bring home a profit in any market condition but to really make the life-changing money we look for when getting into trading means giving a trade time to develop once a position has been triggered.

Defeat, Defeat, Defeat

Without a proper understanding of price action and failing to understand that price has a rhythm and a natural movement to it, trading then becomes a personal vendetta against the market. This then leads on to trying to predict what could possibly happen next and in essence, always trying to beat the market. This approach can work for a trader if market conditions are correct for a certain period of time but the market is fluid. As soon as the environment changes and an approach or strategy is not robust enough to encapsulate these changes, in the end there is usually only one winner.

Mother Market

Simplicity is the essence of trend trading. Trend traders have taken the time to understand the movement of price and instead of taking on the market, learn to become one with the market. Instead of beating the market, we let the market dictate to us what to do, telling us where to enter and the most appropriate strategy to use.

Trade Trigger Time

Patience is a key element to trading. We wait for a trend to be established and when the time is right and our technical analysis has established a high-probability setup, we enter the trade. Once triggered, we then give the trend time to mature with minimal interference for the longer we can stay in the trend, the more profit we can accumulate. The relationship between trend and time is one that needs to be embraced if you are to make a success of your trading. A trend, after all, is simply a function of time.