{"id":3847,"date":"2008-08-25T23:51:48","date_gmt":"2008-08-26T04:51:48","guid":{"rendered":"http:\/\/magic1host.com\/blog\/2008\/08\/25\/the-basics-of-trend-trading-stocks\/"},"modified":"2008-08-25T23:51:48","modified_gmt":"2008-08-26T04:51:48","slug":"the-basics-of-trend-trading-stocks","status":"publish","type":"post","link":"https:\/\/magic1host.com\/blog\/?p=3847","title":{"rendered":"The Basics Of Trend Trading Stocks."},"content":{"rendered":"
by Jesse Profit<\/div>\n

If you’re like me, you’ve heard about trend trading, but you still aren’t sure what that means. Well, to understand trend trading, you first have to understand what people mean when they talk<\/a> about stock trends. In simple terms, a trend is the direction the stock price is traveling over time. If a stock is trending up, the stock price is rising. And conversely, if a stock is trending down, the price is falling. There are two kinds of trends: short-term and long-term.<\/p>\n

Trends are inherently unpredictable and a lot of stock trading systems have sprung up around wild and wooly indicators that “everyone knows” predict not only the way things will happen in the market, but also when. Hard and fast indicators like these are garbage in the long run as the only constant in the stock market is change.<\/p>\n

Trend trading, however, is not a stock trading system or scheme. It’s a method that helps the investor manage the risk that is inherent in the stock market. It takes into account three factors: current market price of the stock, market volatility (the size of past and current trends), and the amount of money and equity in the investor’s account.<\/p>\n

It’s really quite straightforward. Trend trading helps the investor make informed purchasing and selling decisions. It helps the investor know when to get into the market. A good investor should look for opportunities that provide the chance of getting a return of 50% or more on the investment. By evaluating the investor’s equity, the method helps the investor decide how much of that stock to purchase. If the investor purchases too much, there’s the risk of losing too much over a short period of time. However, purchasing too little limits income gains.<\/p>\n

By following the general rules of trend trading, you can limit your risks and, hopefully, maximize your earning potential. These rules help guide the investor to know when to purchase a stock, how much money to risk on any given stock purchase, and when to sell (either when the stock price is going up or when things are going badly). Generally, trend trading will help you to buy low and sell high as often as possible.<\/p>\n

Price, though, is always the primary concern. The system is necessarily based on the unpredictability of the market and the fact that the only thing that can without fail tell you what’s happening to the price of the stock is the current price itself.<\/p>\n

There are stock trading newsletters dedicated to this trading scheme that can help you better understand the practical applications of the basics of trend trading stocks. But beware fly-by-night operations looking to make a quick buck by selling bad info. And also beware the stumbles of long-successful trend traders as their long success can lull you into a false sense of security.<\/p>\n

Last and most important of the basics of trend trading stocks. don’t take risks you don’t understand. Once the money is gone, it’s gone. Don’t assume that you can simply earn it back, because you might never be able to do so.<\/p>\n

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About the Author:<\/div>\n
To find out how more about stock analysis charts<\/a> and trading courses<\/a> please visit my site. Good Trading!<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

If you’re like me, you’ve heard about trend trading, but you still aren’t sure what that means. Well, to understand trend trading, you first have to understand what people mean when they talk about stock trends. In simple terms, a trend is the direction the stock price is traveling over time. If a stock is trending up, the stock price is rising. And conversely, if a stock is trending down, the price is falling. There are two kinds of trends: short-term and long-term.<\/p>\n","protected":false},"author":1065,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[77],"class_list":["post-3847","post","type-post","status-publish","format-standard","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1065"}],"replies":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3847"}],"version-history":[{"count":0,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3847\/revisions"}],"wp:attachment":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}