How following a trend can work
The chart below shows an ideal situation. In this example the trend was entered quite late. Caution: ideal does not mean representative of all trades. To learn more study the chart, where it is accepted that a very high percentage of setups will fail/lose. This is a game about losing but it’s not for losers!
If the trend was spotted in time it could have been followed for a 1425 point gain over the course of 1 month. The gains would have been that multiplied by your bet size e.g. 1425 x 1 = £1425 or 1425 x 3 = £4275. Of course, this is theoretical and subject to anybody’s acceptable loss threshold. This is not an invitation to gamble.
The only thing you can know at the entry of a trend following trade, is how much you’re prepared to lose!! This is the same as with any other trade. The big difference is approaching the market with stealth – which is giving back to the market in order to follow a developing big trend. No predictions at all. No targets no nothing – except you and your skill.
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