Simply put, there are three kinds of trends, short-term, medium and long-term. Given the understanding of these trends will help you understand that the psychology of the markets actually moves the markets and that psychology develops is shown in trends.

Learning how to identify the trend should be the first order of business for any trader of technical analysis. Most investors, once invested in an uptrend, will stay there looking for any weakness in the ride up, which is the indicator needed to jump off and take the profit. Understanding trends will help you look at the down side as well as other aspects of price movement and entry points to make a trade.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.6% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.