Trading Fact: A "Buy Low Sell High"

Trading Fact: A "Buy Low Sell High" Investment Strategy will lose money long term!

The investment strategy followed by most of investors' buy low sell high "will lose money for those investors who follow. Let's look at the facts and you will see why not over the long term and discover a better way to trade.

Buying low they can not do it! Why? Quite simply, it involves predicting the market and reacting to the price effect. In retrospect charts prove it, simply does not work. Traders want to buy low on the dip to support, but how often supports it? The answer is most of the time.

Most traders are so keen to buy low they keep buying into support and then stopped out. They then lose their capital after a certain number of trades, as chances are simply not in their favor, when you try this and see the end losses wipe out their capital account.

Buy low sell high, is only a good strategy if you have the hindsight to see what happened on the charts and will not benefit from it when you enter a trade.

We have all heard of predictive theories of Gann and Elliott, but if they worked and we all know where prices move in advance, there will be no market.

The price will simply be known to all traders and will be no market. Leave the above theories of investment away from the crowd and dreamers and base its strategy on the reality of how and why markets really move.

Back to Basics

So what should a trader do?

The answer is found in a well-known phrase "a trend in motion is likely to continue than reverse.

When the odds favor the most?

The answer is when prices break to new heights and trends in the movement is accelerating at a rapid rate of new price high. Look at any currency chart and you will see the biggest price moves are normally held from important market highs with NO withdrawal.

FACT: A "buy low sell high" strategy will see traders missed most of the major moves.

Traders who wait to buy low is never on the market and you missed this trend, as the price accelerates away from them and never look back. These traders therefore never get a chance to enter the trade.

The secret of buying the market and capture large profitable pace "buy high and sell high" to accept the wisdom of this phrase and you'll be on all the main trends.

It's hard to buy a trend in motion.

The reality is that the odds favor the trend will continue in motion and when the market broke to new heights, the chances of continuing the trend of having the highest.

I did not want to miss the start of the move, but if we trade this way we can get on all the big moves.

Which method is best?

Use breaks resistance, time input with intensity indicators such as stochastic indicator, and be selective with your craft to catch the big moves.