The best way to trade forex is by riding the trend as it allows us to have higher risk reward ratio per trade as compared to other strategies.
Personally the trend strategy is my favourite trading strategy of all. However not all trend trading strategy works as it really depends on the phase of trend you are entering the trade.
In this post, I am going to share with you the 3 phases of forex trend trading so that you can better understand how you can also profits from the trend.
Phase 1: Beginning of Trend
The phase 1 marks the start of a trend and if you are able to identify this phase, you will be able to make the most profits in trading as you will be able to ride the trend at the start of it.
Phase 2: Momentum Trend
The phase 2 of the trend is the point where traders start to realise that the price is trending and start to push it further.
With the momentum of traders, this phase will see the most significant movement of the entire trend.
The problem with most traders is that they tend to get into this phase late which means that they did not ride the most significant movement of this phase.
Phase 3: End of Trend
This usually mark the end of a trend as the price is going to reverse.
In fact, most traders get into trade at this phase which is why most traders do not make money from trading.
Below is the picture of the phases of trend
If you are going to ride the trend of the market, it is always best if you are able to ride it at phase 1 which is the beginning of the trend as this will gives you the most profits in the trade.
However it is really not easy for a trader to identify this phase of the trend. It took me 11 years of trading to be able to identify it last year after years of testing and trying.
For my FHEMA strategy, it is basically the entering of trade at the phase 1 of the trend so that we can ride it till phase 2 of the trend to get a big profit per trade.
You can take a look at the live trade video below which will show you the GBPUSD FHEMA trade that I have taken for users of my trade copier service yesterday.
This is the first trade of Feb 2020 and I am glad to have made you guys profits already. For these 2 trades, I exit both the trades at 45 pips as the price has hit a major support. I saw this support level before I enter the trade and therefore I have entered a bigger lot size to get the same percentage growth when I exit it at 45 pips.
Although the price continues to move further down after I exit the trade, I am still happy as I have stick to the trading plan.
If you take a look at the picture below, you can see that we enter the trade at Phase 1 of the trend which is why we are able to get such a good profits from the trade.
If you are interested to join my trade copier service where I will trade your account for you while you learn how to trade from me, you can take a look at the links below
Please note that the trade copier service is only available to student of my Fx course as the main purpose of creating this service is to help my student grow their account while they learn how to trade from me.