[KOL Analysis] Importance of Spotting Profitable Trends-Karen Foo

Now, spotting a trend is easier said than done. But if you are able to spot one and ride on it, you can potentially experience a lot of untold benefits in your trading career.

The art of trend following or trend spotting is something that is not new. Traders and investors have been doing it for years.

I have personally tried scalping, day trading, swing trading and position trading. I prefer long term trading any day.

So, I want to give you 3 main reasons why learning to spot trend is essential.

1. It is a popular strategy among professional traders

What if you bought gold when it dropped during the 2008 financial crisis and then closed your eyes from that point onwards？ You would have made a handsome profit and return just from buying and holding.

One thing that is common among many retail traders is that they are very technical focused and they are more inclined to get into day trading.

While day trading may be profitable for a small group of traders, theres no harm to look at what the big boys are doing.

Professional traders are mostly fundamentals focused and they make decisions based on leading economic indicators like surveys, housing starts & M2 money supply rather than lagging economic indicators like inflation rates & new home sales.

Unfortunately, retail traders are trading based on what the lagging economic indicators are telling them. That is why they lose big time.

Professional traders hold their trades for months to ride the trend. While this method may not be suitable for everyone, the big trends are where the big profits are made.

2. Less stress, less headaches

One of my favourite aspects about holding a trade for weeks and months is that it can free up time for me to do other things. Of course, I have to do the initial research before I put on the trade.

But once I‘ve put on a position, I don’t really have to stare at the charts all day, which is what a lot of beginner retail traders do.

With that said, Ive tried scalping and day trading when I first started out as a trader.

I find that I‘m mak ing more trades but yet my profits didn’t increase by a significant amount. In fact, my attempt to scalp led to losses. Maybe scalping just isnt for me.

When I switched to longer term trading, I would make less trades but it actually makes me more profits as compared to scalping.

A lot of retail traders have this thinking that more trades would translate to more profits.

I used to think that way too until Ive learned it the hard way.

This is why I always say to people in my seminars, “It is better to make 100 pips from 1 trade than mak ing 100 pips from taking 100 trades”.

When youre trading small time frames, you will need more screen time.

More screen time doesnt translate to more profits. It just gives you more stress.

3. It trains your trading psychology

Of course, most people would go into trend following for profit-driven reasons or maybe its just because it fits their trading personality.

But what most people dont tell you is that it is also a great way to train your patience and discipline.

It takes a lot of discipline to prevent yourself from taking profits when the trend has already gone up 1000 points from your entry price.

It also takes a lot of patience to wait for weeks before you can take your profits. It is human nature to want $100 right now as compared to $150 give to them next year.

Moreover, being a trend follower when you trade forex or commodities will help you develop your patience for other markets as well. This is especially useful if you‘re a stocks investor or if you’re into ETFs.

What I find most interesting about being a trend follower is that it will force you to learn things that more retail traders are not willing to learn, which is fundamental analysis.

Think about this. As a long-term investor, you will need to look through balance sheets, cash flow statements and income statements while stock traders would be more concerned about what the stochastics and Fibonacci are telling them right now.

As a long-term currency trader, you will need to know how money supply, balance of payments and Fed decisions affect the movement of the currency both in an exogenous and endogenous context.

In other words, being a trend follower would force you to learn about finance, macroeconomics and how the mechanisms of the economy are interconnected.

It forces you to keep up to date with the current conditions of the economy rather than what the moving average is doing now.

This skill needs to be learnt regardless of whether you‘re an investor or trader or not because most people don’t even have an idea of what in the world is a “revenue” or “shareholders equity” is!

With that said, only go into long term trading if it suits your trading personality. Some people are just born to scalp and thats completely fine. Do what you are comfortable with.

If you need to learn how to identify and spot trends, feel free to check out my You tube channel for free videos.

All the best!

Author: Karen Foo

Profile:

Karen Foo is actively involved in speaking at various conferences, seminars, expos, workshops, toastmaster clubs and publicly-held events in Singapore and Malaysia

Having overcome numerous setbacks in her life, she has gone on to inspire thousands of youths working executives and leaders of various companies to REALIZE THEIR ABSOLUTE WILDEST DREAMS through her INTERACTIVE, INSPIRING AND ENGAGING TALKS. Being labeled as the “quietest student and underachiever” through out her life, she went on to win numerous awards in public speaking contest, scholarships and hosting large-scale events as an MC. She was then featured in various print media for her academic achievements. She has also been invited to speak at international conferences to leaders from Brunei, China, HongKong, Laos, Malaysia, Vietnam, Indonesia, Myanmar and Singapore.

Karen Foo has been ranked #1 in a Singapore nationwide Forex trading competition, competing with over 200 traders from NUS, NTU, SIM and SMU. She was also ranked top 10 in a contest organized by FX Street, competing with over 300 traders over 20 countries. She has shared the stage with top investment gurus and CEOs at an international expo help at Marina Bay Sands. She is also the contest judge for numerous public speaking contests held around Singapore, ranging from club level to the National level contests. Her wide range of experience has led her to co-author a book “Turning Ideas into Profit” with 10 other Asia‘s experts and professional speakers. Karen is also a contributing author of an investment book titled “Your Cash Moves”, foreword by Adam Khoo, Asia’s Top Success Coach

WikiFX App is a third-party inquiry platform for company profiles.WikiFX has collected 17001 forex brokers and 30 regulators and recovered over 300,000,000.00 USD of the victims.

It, possessed by Wiki Co., LIMITED that was established in Hong Kong Special Administrative Region of China, mainly provides basic information inquiry, regulatory license inquiry, credit evaluation for the listed brokers, platform identification and other services. At the same time, Wiki has set up affiliated branches or offices in Hong Kong, Australia, Indonesia, Vietnam, Thailand and Cyprus and has promoted WikiFX to global users in more than 14 different languages, offering them an opportunity to fully appreciate and enjoy the convenience Chinese Internet technology brings. WikiFXs social media account as below:

Facebook:

Singapore Area：https://www.facebook.com/wikifxsingapore/

USA Area：https://www.facebook.com/WikiFX.US

Nigeria Area：https://www.facebook.com/WikiFX.ng

LinkedIn:

Nigeria Area：https://www.linkedin.com/company/31506916

Twitter：

Nigeria Area：https://twitter.com/WikiFX_NG

Wiki Forum Forum Function:

In order to help more investors, WikiFX has launched the “WikiFX Forum” forum, which aims to provide urgently needed and professional services to Nigerian forex investors.

The exposure function of “WikiFX Forum” includes the following features:

1: Allow investors who have been defrauded by illegal broker to complain directly in the forum (as shown in the screenshots)

As long as there is sufficient evidence, a review panel and an executive team will contact the broker to discuss the complaint or expose it directly through the media. Here are the exposure channels:

2: Block low score brokers from entering the forum

3: Monitor suspicious communication in real time, and directly spot and deal with suspicious fraud;

4: Negotiate with highly reliable brokers selected by WikiFX in the secure environment of WikiFX Forum.

WikiFX APP exposure channel: https://activities.wikifx.com/gather/indexng.html

Information page to understand forex scam and exposure channel: https://activities.wikifx.com/gather/indexng.html

Website exposure channel: https://exposure.wikifx.com/ng_en/revelation.html

Worried about missing out latest trends in the volatile market？ WikiFX ‘News Flash’ is here to help!

With 24-hour real-time update of forex market data by minute, you can seize the opportunity of every bullish market! Bookmark the link below and follow the market trends immediately!

Singapore Area：https://live.wikifx.com/sg_en/7x24.html

USA Area：https://live.wikifx.com/us_en/7x24.html

Nigeria Area：https://live.wikifx.com/ng_en/7x24.html