Overview
Trend traders accept fewer decisions and longer holds in exchange for larger moves. The main skill is staying in a position that is working.
How it works
Define the trend on a higher timeframe, enter on pullbacks or continuation breaks, and trail the stop as structure builds.
Typical setup
- Higher timeframe trend confirmed
- Entry on a pullback or continuation break
- Trailing stop under structure
Advantages
- Fewer decisions
- Larger potential moves
- Compatible with a day job
Risks
- Overnight and weekend gap risk
- Long stretches with no setup
- Trend reversals give back open profit
Common mistakes
- Taking profit at the first green day
- Ignoring gap risk in position sizing
Risk management notes
Position size must assume an overnight gap through the stop, not a clean fill at it.
This guide is educational. It is not a signal service, a recommendation, or a claim that this strategy is profitable. Trading involves substantial risk of loss.