« Day Trading Steps: How I Trade For A Living | Home | Financial Spread Betting Information »
Will The Trend Stop Or Continue On - Find Out How To Tell With Best Online Trading
By John | July 8, 2010
So you’ve begun trading and you’ve come up with a stock trading strategy of your own . You’ve taken best online trading and and for your preferred style you have gone with trend traing after some time in thought.
You’ll definitely find trend trading a strategy that is attractive . Look at a stock chart retrospectively and the trending patterns jump out at you . You salivate about catching a beginning trend and then riding it out to its conclusion months later . Success is ahead of you and that money calls you!
Trading isn’t so easy in reality . You manage an entry - maybe you are late or maybe you have managed to enter near the beginning of a trend , but you do get aboard. You are now in the trade and you’re able to get a small profit as you see the predictions you made come true. Then you have a strong day and after that then the market stops dead in its tracks as the stock hits resistance . You tell yourself that you can’t make the whole move in a day and there is more ahead and so you add to your position . Then the next day the market opens , spends time going nowhere and then plunges south . Since you’ve added to the position you were in you head back to break even fast and once you have the orders in place, you have already lost money. What is the deal? How could you tell before it happened that the trend wouldn’t continue and that you should have taken the profit when the market started strong and then paused ?
Here are several tips for trading that will let you know when a trend is going to go on and when it’s going to stop . If you use the tips along with the technical analysis training you will be well ahead of the game .
First of all : go with higher time period charge when setting targets; look for areas where resistance and support are logical to know when the market is going to stop or start.
If you can’t preduct areas of future resistance and support, or within your trading are unsure of how to coordinate your time frames , then consider using best online trading course for more information. One of the best is Drummon Geometry but there are many schools of thought which are valid as well .
The second element is that you need is a tool which will help you to make strenght and robustness trend judgments . A strong trend will break through resistance or support and a weak trend will stop and either go into sideways congestion at a point of resistance or support or it could start going in the opposite direction. If you have the right tool in your analysis tool kit you’ll be able to figure out which action is more probable ; you’ll have to wait and see without the right tools , and there’s a good chance you’ll be disappointed .
To appropriately measure, momentum tools should be used and then apply them to a smaller timeframe then the one you are in … to make it plain if you’re trading a daily chart, trying to pick out the high or low of the day with your trades , then to support the decisions you make intraday, you look at the hourly or half hour charts.
We’ll talk about this more in Part II of this best online trading series.
Topics: Investing |
Comments are closed.
