The art of trend trading
Trend trading is easy. Wrong. It looks only to be easy in hindsight. If done right, it can be very lucrative. You can also do it wrong and then it is the opposite. One basic element for all kinds of trend trading is the stop loss. The advanced trend trader tries to enter the steepest […]
High probability trend trading
There are generally two ways to trade. Either be often right and make many gains, or be less often right, but make some killer trades. Which is the better one? As so often, there are various answers to this crucial trading question: The trend investing trader likes bigger gains and is less interested in peanut […]
Trend trading secrets
Trend trading is the most direct system to counter the two adverse forces existing in any financial market: Other players with severe advantages The ubiquitous random price movements Like killer waves on the ocean arise out of a sea of small oscillations and unpredictable noise, sometimes a coherent movement, the trend, emerges out of nothing. […]
Trend trading without a stop loss system
Trend trading works best with a tight stop. If a position is stopped out, chances are heightened that the trend has ended. This dualism makes the simple stop trend trading system robust. But there are alternatives thinkable. Instead of entering a trend and having a stop, it is possible to use an oscillator trading system […]
Day trading vs autotrading for trend entry
Trend trading is a fine money machine, provided you have the right entry system. Spotting a trend is not that difficult, but judging its future potential is much more demanding. The more direct way of assuring profitable trading is an entry system that allows for a tight stop. There are successful trend traders concentrating on […]
Getting on a trend on strength or weakness?
Trend trading differs from trend following by the entry method. While trend following switches between long and short, trend trading tries to pick the right spot after selecting the right trend. At least this is our definition, right here and right now. So, what is the right spot? The right entry spot is the one […]
Swing trading the trend
The main problem for the trend trader is to get on a trend in a safe manner. Spotting a trend and placing the bet seems to be so easy, but there are some obstacles. Three things can happen: The trend has ended just in the moment or shortly after you entered it. Either it swings […]
The advantage of the small trend trader
Financial markets are dominated by the large players and random. Big capital has always advantages. Banks and hedge funds have insider knowledge, better technology, a huge staff, and more experience. They also have much more capital, which enables them to manipulate the price, of course legally. Every trade shifts the price into the direction of […]
Trend trading vs bottom picking
These very different trading styles have been confusing legions of traders and investors. Trading the trend and picking a bottom. The first one is for traders, while the latter sounds like a timing system for investors. We are of course inclined to trend following, but we also think that in special markets bottom picking has […]
Relative strength indicator for trend trading
The relative strength indicator is one of the most reliable tools of the tech trader. The reason is that it indicates exactly what the procyclical momentum trader wants. Actually every trader and even investors want this – a trade that goes with a heightened probability in the right direction. Compared with other indicators, like the […]
Trends with pullbacks
Are they better than trends without a pullback? For the seasoned trend trader the answer is a clear no. Best is the smooth trend, no swings, no bases, no dip, no pullback, simply the pure trend. The second choice is the straight trend with a pullback where the price has already regained the lost ground. […]
How to get on a trend?
Such a simple question, it may sound even stupid. But as so often simple questions don’t have simple answers. For trading the important part is the entry. If the timing for the next trade is right, short time frames are meant here, one of the most valuable weapons the trader has, the stop loss method, […]
Trading against the trend
Trading with the trend is the right thing to do, but trading against it – is that actually possible, so that the operation deserves the name trading? The simple buying when prices are down and possibly going further is not trading; it may be investing. Buying anticyclically lines of support or oversold conditions could be […]
Trend trading – long or short?
The short answer is long. The long answer why not to trade trends by shorting is twofold. For one, shorting has at its best an upside potential of 100%. Secondly, and induced by this limitation, downmoves often are more zigzagging than upmoves. A trend should be smooth, otherwise the risk of getting stopped out increases. […]
Trading the trend before it is there
This is a special form of entry technique to get onto a trend – that isn’t there?! Yet! Normally one would wait for a sharp trend to show up, then establish the position only to see the trend vanishing in the next moment. The idea behind the “there is no trend” trading system is of […]
Overbought indicator vs trend trading
There we have the cardinal contradiction. For some a market situation is overbought, for others it is the beginning or resumption of a trend. Who is right? No one in general! That sounds natural, but it means that an overbought indicator or oscillator system has a systematic problem. It makes an unwarranted assumption about the […]
A safe entry for trend trading
Designing a trading system has some abstract requirements. Something must provide potential and some other thing safety. Betting on a trend is probably the best method to tap into potential, besides using insider knowledge or direct market manipulation. On the risk side of this abstract trading equation the right money management is a must. But […]
Trend trading tricks
The most basic component of a trend trading system is the stop loss. It does not only keep losses in check, but it assures that your new investment is trending in the right direction, at least at the beginning of the trade. If the position gets stopped out, the trend may have come to an […]
Investing and trend trading
In order to design a trading system, one has to take care not to add the wrong ingredient into the mix of components. What is good for one system may be bad for the other. Like oil is necessary for a motor, one drop of it pollutes tons of drinking water. One of the worst […]
Trend trading
Hi there, you are just witnessing the start of this trend trading blog, an attempt to help the small trader in the markets, ourselves included. Trend trading, this is the holy grail in trading for ordinary people. You may have heard that there is no holy grail in trading, and that is of course true, […]
