Follow the trend. In other words, you have to trade in the direction of recent price fluctuations. According to experts' analysis, these price changes are related to the random fluctuation of the initial small trend. In other words, if you want to trade successfully, you must follow the trading principle of taking advantage of the trend.
In the long run, you can only make a profit if you keep pace with the fluctuation trend of commodity prices. Therefore, when the price shows an upward trend, you can only adopt the operation mode of buying, and when the price shows a downward trend. The strategy or operation you take can only be selling.
Although the important rules of trend trading are well known, there are not many futures traders who can abide by this rule in actual trading. Before the new trend is established, they always tend to buy at the extreme bottom or sell at the extreme top. But the truly winning traders have been waiting, and after confirming that a trend has been formed, they will create positions consistent with this trend.
The opposite of following the trend is forecasting, but almost all futures investors fall into this trap. These trapped investors have thought about futures trading and come to the conclusion that the road to success is to learn to predict the future trend of the market. Therefore, these people have also publicized their latest forecasts for the futures market. In fact, this is a trap. As a successful investor. There is no need to predict the market at all. What we can do is to conform to the market trend. If you are a long-term follow-up futures investor, you will find that the market really does not need to predict.