Trading with the Trend: It’s as Easy as ABC

What’s the target? Objective entry, stop-loss and acceptable capital exposure. Learn how to attain these by trading with the trend.

Most traders have heard the old market adage, “the trend is your friend.” However, once a trend has actually developed, how does one get into a trade in the direction of the trend with acceptable capital exposure? To do this, it is necessary to first observe and learn the different characteristics of a trend and counter-trend (or correction).