Report:

Trend
Trading



A
whole
library
could
probably
be
created
to
house
the
infinite
methods
of
investing

in
the
sto...
In
the
example
of
Energy
Conversions
(ENER),
we
see
the
stock
eventually
hit
a

point
of
resistance
(higher
blue
line).

M...
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Trend trading

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Trend trading

  1. 1. Report:

Trend
Trading
 
 A
whole
library
could
probably
be
created
to
house
the
infinite
methods
of
investing
 in
the
stock
market.

Obviously
the
goal
is
to
find
the
best
one
that
you
understand
 how
to
use
and
the
one
that
brings
in
the
most
profit,
of
course.

 
 When
it
all
boils
down
to
it,
trading
stocks
can
be
as
simple
as
you
want
it
to
be,
and
 that
is
what
I
am
about
to
share
with
you:

the
idea
of
the
trading
trends.

Basically
 the
type
of
trade
states
that
stocks
do
not
move
in
simple
up
and
down
 patterns,
rather
there
are
up,
down,
and
sideway
movements.

All
three
inputs
 are
what
create
three
distinct
trends.

Taking
this
further
we
find
odds
of
a
slumping
 stock
is
less
likely
to
just
 skyrocket
back
up
before
 experiencing
some
form
of
 sideways
movement,
also
called
 consolidation.
 
 What
is
the
significance
of
all
 this?

Our
risk
has
been
 minimized
greatly.

With
the
 trend
trading,
we
are
not
 looking
to
spot
tops
or
bottoms,
 but
we
are
looking
to
lock
in
on
 the
stock
after
the
new
trend
 has
been
created.

We
wait
for
the
stock
to
build
a
foundation
in
the
 consolidation
period,
and
then
jump
on
it
after
the
stock
breaks
out
of
its
 sideways
trading
range.

 
 The
beauty
of
the
trading
trends
is
that
it
allows
us
to
avoid
“fake”
trends.

 How
many
times
do
traders
think
they
have
called
a
bottom
only
to
get
duped
into
 the
stock
heading
even
lower,
 which
results
in
a
loss
trade?

 Once
again,
by
waiting
for
the
 sideways
movement
to
complete,
 we
can
see
whether
the
stock
is
 actually
planning
on
 continuining
the
lower
trend
or
 if
the
stock
is,
indeed,
heading
 towards
an
upward
trend.

 
 For
the
trend
trade,
our
price
 target
is
at
the
spot
of
resistance
 or
support
of
where
breakage
occurs.

That
point
then
turns
into
the
support
or
 resistance.

 
 TREND
TRADING
–
PRESENTED
BY
THE
WILD
INVESTOR
©
2009
 1
 

  2. 2. In
the
example
of
Energy
Conversions
(ENER),
we
see
the
stock
eventually
hit
a
 point
of
resistance
(higher
blue
line).

Many
people
would
jump
at
the
conclusion
 that
the
stock
had
topped
out,
so
they
might
possibly
short
the
stock.

Later
down
 the
road,
ENER
created
the
support
(bottom
blue
line).

Now
these
shorters
probably
 got
scared
and
tried
to
cover
themselves
by
going
long
and
spending
excess
money
 on
commissions
and
other
losses.
 
 The
bottom
line
is
that
we
do
not
have
a
clear
sense
of
which
direction
the
stock
 wants
go.

In
the
example
of
the
first
chart
above
(INDU),
we
see
the
chart
go
into
a
 consolidation
period.

At
that
time,
many
people
thought
we
hit
a
bottom.

The
 problem
was
that
we
actually
did
not.

In
fact,
we
just
created
a
even
stronger
 downtrend.

 
 Overall
the
trading
trends
is
meant
for
those
looking
for
a
simple
and
limited­ risk
trading
method
that
allows
them
to
profit
off
solid
trends.

Using
other
 technical
analysis
and
chart
patterns,
we
can
obviously
extend
our
use
of
trend
 trading.
 2
 TREND
TRADING
–
PRESENTED
BY
THE
WILD
INVESTOR
©
2009
 


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