Is Trend Following The Right Strategy for You?
The strategy of trend following goes against the old Wall St. Philosophy of buy low and sell high. It takes benefit of the market whether this trend is up or down. Traders using the trend following strategy begin trading after a trend is established. Other traders try and predict what the market will do, trend followers wait for the market to do it. The size of the trading account and the volatility of the issue are the primary determining factors in how much to invest.
Traders who use trend following use software that's programmed to exit when an unexpected downward trend in their issue happens. Then the traders wait to work out if the trend gets back on track before re-entering. It's truly about staying with a longtime trend and getting out if the trend changes direction.
For a trend follower, its all about price. Although other things may be considered, price is all vital. The quantity of the investment is determined primarily by the price of the issue. The timing is not as vital as the cost. Before commencing a trade, the trend supporter will have planned his exit method. The timing for getting out whether the trade is a winner or a loser is more important than the the timing for the buy. The software can be set at a destined stop loss point to avoid unacceptable losses.
Before entering a trade, most trend disciples will test it on their software so they can appraise the probable hazards and gains. The software is programmed with various factors relating to the particular trade. The trader then decides if he should make the trade under consideration.
Trends are effected by events that cannot be foreseen. An argument in a rising trend can go down due to an event or can go up. Hurricane Katrina is an example of an event. As soon it it became clear the hurricane would hit the city of New Orleans, gasoline prices rose. Trend disciples in the commodities and stock markets began investing heavily in oil which drove prices up farther. There has been some feedback of trend following, especially in the commodities market. Some critics believe that trend supporters essentially effect the market.
By definition, all stock market investing is speculative. Following trends is a particular method for benefiting from swings and roundabouts in the market and using them to your own advantage. Unlike hot stocks, which involve holding stocks for very short periods, hours or days, trend following involves keeping stock for longer periods, though the basic principle is sort of similar. In trend following one might hold the stock for a week or a month depending on the trend.
There is no guarantee that you are going to make cash using trend following or any other market technique. However to enter into market investments without a plan is sort of a warranty that you're going to lose money. The best way to make cash in the market is to employ several different methods at one. You'll selected to use trend following together with hot stocks and buy low sell high strategies. Spend a while determining which strategy works best for you and then move the majority of your investments to that method. Many people have been quite successful using the trend following technique. The software you'll need to properly employ this method is available on the web. Don't attempt to take part in trend following without the proper software. - 23204
Traders who use trend following use software that's programmed to exit when an unexpected downward trend in their issue happens. Then the traders wait to work out if the trend gets back on track before re-entering. It's truly about staying with a longtime trend and getting out if the trend changes direction.
For a trend follower, its all about price. Although other things may be considered, price is all vital. The quantity of the investment is determined primarily by the price of the issue. The timing is not as vital as the cost. Before commencing a trade, the trend supporter will have planned his exit method. The timing for getting out whether the trade is a winner or a loser is more important than the the timing for the buy. The software can be set at a destined stop loss point to avoid unacceptable losses.
Before entering a trade, most trend disciples will test it on their software so they can appraise the probable hazards and gains. The software is programmed with various factors relating to the particular trade. The trader then decides if he should make the trade under consideration.
Trends are effected by events that cannot be foreseen. An argument in a rising trend can go down due to an event or can go up. Hurricane Katrina is an example of an event. As soon it it became clear the hurricane would hit the city of New Orleans, gasoline prices rose. Trend disciples in the commodities and stock markets began investing heavily in oil which drove prices up farther. There has been some feedback of trend following, especially in the commodities market. Some critics believe that trend supporters essentially effect the market.
By definition, all stock market investing is speculative. Following trends is a particular method for benefiting from swings and roundabouts in the market and using them to your own advantage. Unlike hot stocks, which involve holding stocks for very short periods, hours or days, trend following involves keeping stock for longer periods, though the basic principle is sort of similar. In trend following one might hold the stock for a week or a month depending on the trend.
There is no guarantee that you are going to make cash using trend following or any other market technique. However to enter into market investments without a plan is sort of a warranty that you're going to lose money. The best way to make cash in the market is to employ several different methods at one. You'll selected to use trend following together with hot stocks and buy low sell high strategies. Spend a while determining which strategy works best for you and then move the majority of your investments to that method. Many people have been quite successful using the trend following technique. The software you'll need to properly employ this method is available on the web. Don't attempt to take part in trend following without the proper software. - 23204
posted by X - Men @ 5:16 AM
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