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The Rise Of STARTRADER

One Of The
World’s Fastest Growing Brokerage

The Rise Of STARTRADER

One Of The
World’s Fastest Growing Brokerage

Trend Following

Trend following is a trading approach that tries to join an established price move and remain with it while the trend continues. The rules may use breakouts, moving averages, or recent highs and lows. A system could buy after price reaches a new 50-day high and leave after it falls below a shorter-term low. Trend followers do not need to explain why the market is rising or predict the final top. Their difficulty comes during sideways periods, when repeated false starts can produce several small losses. The method depends on occasional sustained moves being large enough to outweigh trades that fail.

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