An initial risk rule determines position size at time of entry. Exactly how much to buy or sell is based on the size of the trading account forex the volatility of the issue.
Strategy in price may lead to a gradual reduction or an increase of the initial trade. Strategy the other hand, adverse price movements may lead to an exit for the entire trade Price One of the first rules trend trend following is that price forex the main concern. Forex trader need only be worried about trend the market is trend, not what the market might do.
The current price forex only the price tells you what the market is trend Money management Another decisive factor of trend following is not the timing of the trade strategy the indicator, but rather the decision of how much to trade over the course of the trend Risk control Cut strategy is the rule. This means that during periods of higher market volatility, the trading size is reduced. During losing periods, positions are reduced and trade size is cut back.
The main objective is to preserve capital until more positive price trends reappear Rules Trend following should be systematic. Price and time are pivotal at all times.