"Eastern Economic Times ONLINE column now available" Techniques for riding the trend

Good morning, this is Matsushita.

Yesterday, at the invitation of a certain FX company,

I held a web seminar.

When invited by external companies for seminars,

it has been about two years, and I think many participants got to know me newly.

Normally, after the main talk in a seminar,

we take questions and answers.

Yesterday, after a 70-minute lecture,

I answered various questions for about 20 minutes.

Among them, there was a question that left a strong impression and felt very honest.

It was,

"I can't ride the trend.

How can I ride the trend?"

The question was.

Yesterday, as a reason why trading FX can be profitable,

the existence of market trends and, under money management,

to utilize that trend.

Within this theme,

the above question is exactly on target, a straight hit.

Many people have trouble riding the trend well.

Those people

"What is an uptrend?

What is a downtrend?"

The "definition of trend" does not exist inside them.

With this, they cannot ride the trend.

To ride the trend,

a "definition of trend" is necessary.

And here too, the problem is that

there are countless definitions of trend.

For example, the globally renowned trend-following method called the

"Turtles" trading method

is to buy when the high price for 20 days is broken upward.

In other words, for the Turtles, the definition of trend is

"an uptrend when the 20-day high is exceeded."

In the same sense, the use of two moving averages,

the Golden Cross and Dead Cross, can also be used as a definition of trend.

This rule has existed for decades and is a well-known

definition and rule of trend following.

For me,

the definition of trend is

"raising the low."

In this way, the trend I want to ride,

what trend I target,

by studying and learning this definition,

I must internalize it; otherwise, I cannot ride the trend.

Probably the questioner yesterday also did not study the definition or the trend,

and was attempting to ride the trend by feel.

Trends should not be ridden by intuition, but

by defining the trend, and then following that definition,

"I will buy when an uptrend occurs"

or,

"I will buy when the downtrend turns into an uptrend."

If you do this, you can ride the trend.

Please learn the trend and

obtain your own "definition of trend,"

so that you can ride the trend.

Then profits will come to you.

If you do not do this, profits will not come.