and hello I'm just doing some FX trading 101 yoga I'm Rob Booker welcome back everyone happy to have you here along for the ride thanks for staying with us always happy to hear from you you can add me on Twitter Rob Booker find me on Facebook at Rob
Booker trader you can listen on soundcloud and wherever else I mean I know you probably know these things already and you're probably reading in the description below all of the good things that you can get along the way but we're just happy that you're here I'm happy to
have you along the way there's a big argument that has been gone on in all of trading not just currency trading for years and years and years and that argument is between trend versus counter trend trading in fact trend trading is sort of a Jedi religion it's not
even a Jedi religion it's like sort of like a violent religion where trend traders get out their swords and their pitchforks and they chase after counter trend traders and and today I want to talk about some of the myths and the realities about these two types of trading
and I wanted to start things off by describing to you what it generally what it generally is when someone says that they are a trend trader what people will generally mean when they say that they're a trend trader is they will look at a longer term chart like
a weekly chart or a daily chart or even like a 4-hour chart and they'll say from left to right the trend is up and they may draw trend lines underneath price they may use certain indicators on their screen maybe their own indicators or whatever else and they'll make
a declaration they'll say that the trend is up they may even start on a shorter term chart and they may even say Oh on the one-hour chart the trend is up and once they've said that that either the trend is up on a long-term chart or up on
a short-term chart I'm only now going to trade up I'm only going to buy this is typically what a trend trader does although there's lots of different methods and reasons and ways that they declare that the trend is one way or the other a trend trader will typically
only trade in the direction of that trend and once again just like there are lots of different flavors of each religion there are lots of different flavors of trend traders but generally a trend trader is saying I have looked at a chart and the trend is up on
this one and so I am only taking buy trades and they might take those from short-term charts they might take it from the same chart they viewed the trend on native anything if you have any questions along the way on this please chime in I can hear the
questions ringing in my ears will do trend traders always trade from the same time frame chart no Dew trend traders always trade from the short timeframe chart no Dew trend traders always use the daily chart to see the trend no Dew trend traders always use trend lines no
the there's there's a thousand varieties of it and that's why if you say you're a trend trader it doesn't really mean anything it just means generally you have identified that a trend exists and you're only going to trade with it but we need more information before we can
know that you might also find trend traders who say things like well the trend is if I can find an example here you might find a trend trader who says that the trend is down so maybe they're looking at the chart here from from left to right and
they're seeing that the movement is down and they might say oh well that the the movement here on the chart is down so I'm on this chart I'm only gonna take sell trades or I'm gonna move to a lower timeframe chart and I'm all they're gonna take sell
trades I'm gonna get my direction from this time frame chart and then I'm going to take my trades from this time frame or some other time frame chart and I'm only going to trade in that direction and they're gonna use like I said support and resistance or trend
lines or an oscillator or an indicator or a proprietary indicator or they're gonna use a thousand different ways to judge the trend this is not a lesson on how to identify the trend we could talk about that later but listen it's just a philosophy and there are people
who become angry if they feel that you are not a trend trader in fact some P but we'll point out to you and you'll find this you'll say oh I'm gonna buy the British Pound and they'll say oh the trend is down and you'll think well no it
was and I looked at it I just looked at a chart a few minutes ago and the trend wasn't down it was up and they go no no no no the trend on the daily chart with the the the toilet toilet bowl swirl price pattern definitely up and
you'll go what is that why would that even matter to me and what they'll do is they will call you a vicious dirty lousy evil counter trend trader who these are the villains in the world of trading and they'll call you that even though you may not even
identify yourself as such you may not think you're a counter trend trader but they may think you are a counter trend trader in the world of trading is generally viewed as someone who although the chart appears to be going down is willing to buy or even though the
chart appears to be going up is willing to sell even though the trend was up a counter trend trader would be willing to sell now that seems really weird right we just finished a conversation about the fact that a lot of this just appears to be I don't
know mumbo-jumbo or whatever maybe it's all made up let me give you a perspective on this a lot of people say on the counter trend trader and they say that because I've built an indicator which shows points at which the market might reverse I might sell right here
even though price has been going up and I might buy right here even though price has been going down and so I'll buy right there for example and someone will call me a counter trend trader why because I bought even though price is moving down on that chart
or some chart that they're looking at but here's my question what if on a longer time frame chart the trend was up or what if I bought here because a moment ago it was moving up I mean what does it really mean to say that you're a counter
trend trader it means you're trading against the most recent movement of price that doesn't seem like the biggest deal in the whole world to me and if you're buying or selling on a chart you may unknowingly be trading against or with some longer-term trend from some other time
frame chart and no matter what you choose to do you're always gonna find somebody who's got enough time on their hands that they're gonna tell you that you're doing it wrong and I want to tell you don't get wrapped up in this argument don't don't even bother with
it it everyone has their own definition of a trend and a counter trend and you may find that you're never gonna fit into one of those two camps but whatever you want to call yourself is fine let me just say something about trend traders I know it sounds
like I'm being critical but the a lot of trend traders spend a great deal of time criticizing other people and I don't think that's useful and I don't think that's helpful let me just describe to you what a trend trader will generally do so let's go back through
the the the chart let's say a trend trader is identifying movement up in a trend and that means they want to Nate buy or sell what do they want to do they want to buy because the trend is up and are they going to buy right away no
they're generally going to wait for a retracement or a sell-off or a discount to take that buy trade does that make them a counter trend trader I don't know does it mean that they're buying something on sale yeah I think that's really smart something that has been going
up they wait for it to move down and then they buy it yeah trend traders don't necessarily have any relation to day traders or long term traders or anything else day traders are short-term traders and they may trade with the trend or against it interesting question a counter
trend trader someone who typically if it's been moving up they're happy to sell and if it's been moving down they're happy to buy that sell or that buy could be with or against a longer-term trend and we don't really know it's not worth our time to really get
into extended arguments when you decide to be a trader you should focus more on what you do well and less on these names that people throw around but I would recommend that if you want to be a trend trader find out number one how to identify that price
is moving up and you've decided that a trend exists and then decide what you're going to do to determine that price has given you a discount or gone on sale and given you a chance to buy with the trend now of course everything could be reversed for sell
trades trend traders can be buyer's or seller's it doesn't really matter any questions that occur to you Nate as we kind of discussed this trend trading stuff alright great thank you to our sponsor if you're interested in FX trading contact forest park FX to open an account and
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