There are some traders who are extremely patient and love to wait for the perfect
setup while other traders are extremely impatient and need to see a move happen
quickly or they’ll abandon their positions.
These impatient traders make perfect momentum traders because they wait for the market to have enough strength to push a currency in the desired direction. Then they piggyback onthe momentum in the hopes of a profitable extension move.
With these types of trades However, once the move shows signs of losing strength, an impatient
momentum trader will also be the first to jump ship.
Therefore, a true momentum strategy needs to have solid exit rules to protect profits while still being able to ride as much of the extension move as possible.
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