Big Trends For Massive Gains
Big Trends For Massive Gains : A little while ago I wrote an article on the 70 day moving average and its potential to a great profit. Let’s look at the method and its profit potential.
The above is a simple long term trend following system and it’s a fact that in long term trend following, the closing price is the best way to enter the trend as it’s the end of the trend that’s the best place to buy.
Now the system above was designed to find and pick big trends and concentrate on them.
Many traders like to trade short term and I cant argue with that, however from my experience its the big trends that make the big profits and no day traders or scalpers should want to miss them.
The 70 day MA is a great place to enter a trend as it represents the long term average.
You then need to wait for the move to the downside and place your stop below the middle of the Bollinger band.
Downsides to this move are:
That may not sound so much as it’s such a simple system, don’t let the small percentage of losses worry you will have a lot of them, focus on the long term profits which are the only ones that count.
Will most traders use the above system? No they wont.
Think about it:
Would you take a job in which you had no prospect of ever getting paid by the end of the week ending of the month?
Of course you wouldn’t!
Trading is the same.
You have a logical well thought out method and the confidence to apply it, in order to make big long term profits.
This system may sound simple and it is – but simple systems always work best as they are robust and have fewer elements to break than complicated ones.
All the best currency trading systems are simple and yours should be to.
You may say, as human nature is constant this won’t work ( finally when I checked the price momentum on this trade and it picked up some huge chunks on the downside) but if you look at how short term price spikes work, you will see that they don’t last for long.
For me, buying breakouts is one of the best ways to make money.
You can use some momentum indicators to help you spot the good ones and two great ones are the stochastic and RSI – There both visual indicators and great for checking support and resistance any time frame.
If you use this method the huge gains in equity that you can make will help you build real wealth quickly. 정수리 탈모
The system above is simple, logical and works and while it’s not trendy, that doesn’t mean it won’t make money.
Most traders though hate doing the above, despite the fact it makes money and will continue to do so, as they are obsessed with trading in short time frames and always want to try and force profits but they forget, you have to have the big profits to cover the small losses.
Trading long term fundamentals is a great way to make money and the above system will put you firmly in the winning minority of winners, who make big profits.
