How To Trade On Trending Markets:

Here we are learning about how we trade at Trending market. There have to take a trade is easy and now we take easy trade by the rules follow.

If you can identify a trending market, it will be easy for you to trade it, if it is a bullish market, you will look for a buying opportunity, because you have to trade with the trend, and if the market is bearish, you have to look for a selling opportunity. But the question is what is the right time to enter a trending market?

Trending markets are characterized by two important moves, the first move is called, the impulsive move, and the second one is called the retracement move. See the example below to understand what i’m talking about.

As you can see, the market is making higher highs and higher lows which indicates a bullish market, if you see this market you will think of buying. But as you can see the market is making two different moves, the first move is an impulsive move, and the second one is a pullback or a retracement move. (corrective move) 

Professional traders understand how trending markets move; they always buy at the beginning of an impulsive move and take profits at the end of it.

This is the reason why the market makes an impulsive move in thedirection of the trend and retraces before it makes another impulsive move.

If you are aware of how trending markets move, you will know that the best place to buy is at the beginning of an impulsive move, traders who buy an uptrend market at the beginning of a retracement move, they got caught by professional traders, and they don’t understand why the market hint their stop loss before moving in the predicted direction. See another example of a bearish trend. 

The illustration above shows a downtrend market, as you can see the best trading decision is to sell the market at the beginning of an impulsive move. 

If you try to sell in the retracement move, you will be trapped by professional traders, and you will lose your trade.

Now we know how to identify downtrends and uptrends, and how to differentiate between an impulsive move, and a retracement move. This is very important for you as a price action trader to know.

BUT the most important question is how to identify the beginning of the impulsive move to enter the market in the right time with professional traders, and avoid being trapped by the retracement move?

To predict the beginning of the impulsive move in a trending market, you have to master drawing support and resistance levels. 

So, what are support and resistance levels and how to draw them on our charts? this is what we will see in the next Post.

Rules to follow starting out so you don't get scammed - These are important as this is where most fail with signing up to a new broker.

Rule #1 - Never invest money you can't afford to lose.

Always mind it that never invest of your full amount. You need to think like a business man not think like a gambler. Example: If you have $100000 then you would not invest $80000. Then if you lose then it'll be very difficult to recover the money.

Rule #2 - A broker makes money when you loose, just like a sports book.

Broker Never loses their money if your trade profit or lose. No, a broker does not lose any money when clients earn profits because the broker is not the counterparty! When you trade on the exchange and you earn profits, the counterparty to your trade loses.

Rule #3 - Never allow a broker to trade for you. Remember Rule #2.

Rule #4 - Start trading with a demo account first to prove viability and learn how to trade.

At First try to start trading by your Demo account. Because by the practice on the Demo account you gather the knowledge about how to trade on this platform. So Mind it that never go to Real account first time.

Rule #5 - If a system/software/bot/trader requires you to deposit/use real money don't do it. It breaks Rule #3.

Also mind it that market always not going same logic. it's depends on so many option of the market. So if you use any auto software/bot for trading then the possibility of lose you money 80%~90%. Because Market moving depends on it's Sellers and Buyers. 

Rule #6 - Never accept a bonus that requires turnover and traps your money from being withdrawn.

There are so many scammer on this platform. So always judge about before you invest or not. 

Rule #7 - Always trade a percent of your account, a small percent to manage risk and maximize profits.

Already share how you need to trade. You always use small amount of your total balance. Example: If you have $100000 then you can invest $100. That's mean 1%~2% of your total amount. So that if you lose then you can recover them upcoming trade.