#TrendTradingStrategy | Trend Trading Strategy
"Trend following" refers to a trading approach that focuses on capitalizing on the underlying market movement, whether it is upward or downward. This strategy aims to profit by aligning with the overall market direction rather than opposing it.
📈 In an upward trend, an investor buys assets such as stocks, exchange-traded funds, futures, or cryptocurrencies with the goal of benefiting from rising prices.
📉 In a downward trend, professional traders may seek to take short positions, either by short selling, buying inverse exchange-traded funds, or using put options to profit from falling prices.
Since short selling or trading derivatives requires specific conditions and certain financial solvency, many traders simply prefer to close their positions during downward trends and return to buying once a new upward trend is confirmed.
💡 Our opinion? Trend strategy is considered one of the most effective methods in volatile markets, but it requires discipline and careful market analysis.
📢 Share your thoughts:
Do you think the trend strategy is suitable for all traders? Or does it require certain expertise?
