Trend traders follow general price trends and try to enter during an uptrend and exit before a downtrend. Trend of transactions can take up to a few months in some cases. Trend trading is a very traditional investment style, as trend traders rely heavily on support and resistance lines.
Many trend traders suffer from short-term stock trend reversals – which can be dangerous. Let’s say the stock rises for a while after crossing the previous support line – a trend trader can enter at this point. As the stock price rises, it is likely to come back down, allowing the swing trader to exit and secure his modest 5% profit. A trend trader, on the other hand, trusts the trend he has confirmed – and patiently waits for the trend to continue, hoping for higher profits.