Okay, now, let's talk about the pros and cons of swing trading, so first thing right, swing trading. The pros is that it has a higher winning rate right, because you are consistent in capturing your swing right from one trade to another, and you are usually exiting your trade before opposing pressure steps in so your winning rate should be higher. The downside to swing trading is that you are unable to write trends and that's because you will exit your trade at a predetermined target and if, let's say the market, you know exits you that target and continues right moving in that same direction. You will be on the sidelines right unable to reap profits from it, because you have already exited the position okay, so this brings us to the next type of trading, which is trend following, and this is for you if you want to write trends in the market.

So what is trend following right? It's in essence right trying to write a trend. So it's different from swing trading, where you're just capturing one move, no riding a train right is trying to capture the meat of the train right to ride the waves right as he continues to go higher, and to do that right, you will use a trailing stop-loss. So there are different types of trailing stop-loss out there, the one i'm going to teach you is moving average trailing stop-loss so, depending on the type of friends that you want to capture, whether is it short-term, medium term or long-term trend right, you can use a different Moving average parameters right to meet your needs, so in essence right. What you are going to do is that, let's say the market is trending higher, okay, you're, going to overlay this trend with a moving average.

Something like this over here and as long as the price is above the moving average. Here you will continue to hold the trade only if the price you know pulls back and then finally closes. Let's say it closes. The candle closes below the moving average right.

Then you exit the trade when it closes below this moving average. If not, you continue holding the trade right and see how much of a trend you can capture and which moving average parameter to use depends. You know on what you want, whether you're going to capture a short-term trend, medium-term trend or a long-term trend. So if you want to capture a short-term trend right, you can exit the trade when the price closes below the 20-period moving average.

If you want to ride a medium-term trend, you can exit when it closes below the 50-period moving average and if a long-term trend can exit when the price closes below the 100 period moving average. So there's no best moving average settings here right in case you're wondering some of you might be thinking, okay rain so which you know moving average is the best to ride a trend. There isn't right. Unfortunately, so there's pros and cons to you know trying to write a short term or long-term trend so for short-term trend right.

The the downside is that you might get stopped out of your trade too early right. Maybe it could be just a pullback, but because it really hits your short-term trailing stop-loss. You are out of the trade, but the good thing is that you know for trying to write short-term trainer. You don't really have to endure too much pain, because the depth of the pullback is usually uh, quite shallow, that you have to endure and if you endure any further, you are already stopped out compared to let's say a long-term trend right.

The good thing about long-term trend is that it keeps you in the trade longer. So even if the pullback can be deeper, there's a good chance that you can still be able to ride it out and continue writing the trend. The downside, right to riding a long-term trend is that it's going to be more painful, because you can see that the amount of open profits that you have to give back right while trying to write the long-term trend, is a lot more. So when the pullback occurs right, you will see open profits, get smaller and smaller and smaller, and it can be emotionally like more difficult right because you watch a huge chunk of your profits.

You know get returned back, so that's kind of like the pros and cons to you know short term trend following and longer term trend following and again, there's no right or wrong. You have to find the one that suits you best, so just to illustrate a quick chart example. So let's say this is the chart of a brand crude oil. Okay, if you let's say for whatever reason, maybe you've got long somewhere about here.

But let me just change, let's say you've got long for whatever reason right, i don't know what the reason is. That's not important, let's say buy somewhere here and market moves in your favor, so you can see that if you overlay for 20 period moving average, you will be pretty much. You know exiting your trade, probably when this candle breaks and close below this 20 period moving average. So you can capture, you know pretty much at this portion of the move and if you go with, let's say a 50 period moving average, you can see that you are in the trade longer, because when this candle closed bearishly right it did not close below the 50 period moving average, so you can see right that you're actually in this trade right, uh you're able to withstand more pain, in other words right by using a slightly longer term, moving average.

In this case, you would have you know, exit the trade over here on this candle when the price breaks and close below this 50 period moving average. And finally, if you go with a hundred period moving average in this case, you can see that you can endure. Even more pain right and you will be pretty much still in this trade right - you wouldn't have gotten stopped up on this pool back here. You have to you, know, kind of withstand that pain and then eventually watch the market bounce back in your favor.

So again, i'm not here to say you know whether the 20 period moving average is past, the 50 or the 100. This is something that you have to decide and be comfortable with for yourself right and to decide what type of trend you want to capture, whether is it long term short term or medium term, and that's how you know trend following works and you have to be Comfortable right with giving back your open profits because, for example, if you saw earlier the 50 period moving average one right, you are not gon na exit. You're, not gon na, be like a swing trader where you manage to exit right. Let's say before this swing high over here: okay you're only exiting your trade after the market has pulled back and moved against you, so you can imagine at one point in time right.

Your open profits right is at a maximum right around this high over here, where the market's really bullish in your favor, and you saw your open profit slowly dwindle and then you know uh decrease right as the pullback occurs. So this is something that, as a trend follower, you have to be prepared as well. That's the only way right you will write. The trend is by to to be able to give back open profits that is kind of like the cost of being a trend follower.

So with that said, right, let's talk about the pros and cons of trend following the pros is that you can write massive trends. Okay - and you know it can be a huge profit potential for you. The downside to it is low winning rate, because you're always right trying to attempt to ride the trend using a trailing, stop loss right. You will only exit the trade after the market has moved against you, so this usually results in a lower winning rate compared to a swing trader.

So really it depends on the type of person you are. If you hate being wrong right, then swing trading is probably for you, but on the other hand, if you're someone that really wants to write trends right, you can't stand missing out on trends. Then trend following is probably for you, but you have to embrace right. The so-called downside that comes along with it, namely a lower winning rate.

So, let's do a quick recap: shall we first we spoke about stop-loss right and how you want to set it at a proper level which invalidates your trading setup and the technique i share with you is to set your stop-loss 1atr beyond the aerial value. Then we spoke about different types of exits. If the market moves in your favor for swing trading, you want to exit before opposing pressure steps in and finally, we spoke about trend following trailing your stop-loss, to write a trend. Okay, i get it now.

You are probably feeling ah overwhelmed right. What is this right now? You know market structure, aerial value, avengers absent, for example. What's going on, so i get it right, you are overwhelmed, you might even be you know a bit confused, but don't worry because in the next section right i will share with you how we can actually utilize all these different concepts, strategies and techniques that you have Just learned right to trade, the markets, in fact right. My own trading strategy is based on all these concepts that i've just shared with you.

I will share with you. You know how to actually uh use it right to profit in bull and bear market. So all this and more in the next section breathe in breathe out. Let's go you.