Trend trading is a forex CFD strategy that tries to capture profits through the trend analysis of momentum. This allows for investments in both up and down market. The theory behind trend trading is using technical indicators such as moving averages to determine overall direction. This type of trade generally does not wait for specific entry points but rather participates during the trend.

Trend trading still takes into consideration the market price, volume, and risk-reward ratios. Further technical analysis can help determine minor corrections along the trend. It is similar to swing-trading but positions are generally held for a longer time period. You must be comfortable sitting through any pullbacks and possibly periods of little activity or sideways movement. The first step in mastering this strategy is to understand a trend and the rules that govern trends. Learning to draw a proper validated trend line can help in all of your trading. Remember there are risks of the trend reversing and moving against you. You should incorporate this strategy with the proper risk management guidance.

The leveraged trading products available on this website are not appropriate for everyone. It is possible for losses to exceed your account balance. Do not trade with funds you cannot afford to lose and seek advice if you do not understand the risks.