Is there a secret to trading or are there even many secrets? Or is there no secret at all? Naturally this is a difficult question. If the answer were known, the question wouldn’t deal with secrets. So, we have here a conundrum without a definitive answer. It is more a question with various viewpoints as possible answers.
The trend itself is the secret
This idea is not surprising for a trend trading site. Still, it has its reasons. A trend shows that there is something going on. That’s better than speculating that there will be something going on. The trend itself may be the indicator for a deeper reason. The trend suggests that it may offer the fastest appreciation of your capital.
Trading at the high
Trend trading done right enters a trend that is currently running. A trend at a high is running. At least more likely than a trend pulling back. This is the most difficult part for many. It requires the trader to act against the primitive instincts that we all internalized, namely buying cheap.
Using the stop loss method
Complementing the idea of trading at the high is using a stop loss. Trends can easily reverse and without a stop the trader gets the full potential of the trend, unfortunately with the wrong sign. But the stop loss system means more for trend trading. It is the single most simple and robust trend trading system there is. If you are stopped out, the trend has come to an end. If not, the trend is still running. That is a trading mechanism, which inherently has the rocket built in, probabilistically of course.
Tuning the system
Trend trading at the high with a risk limiting stop loss system is not as easy as it sounds. Even not for an emotionless robot. A price at a high may also indicate potential for a temporary pullback. Trading is difficult. The devil is in the details. There is no simple road for all. A trader needs a sophisticated trading system. It should be as simple as possible. But it won’t be simple. You are searching for the perfect trend trading system? Trading is an art! Comply to this uncomfortable wisdom and you may have a chance.
The deeper reason
A running trend is telling you something. The market has so far constantly underestimated the potential of the move. But trends are different. At this point the idea of a trend trading system was born. This symbol is often used for volatility, validity, and quality. It is a scientific symbol, but you can also think of it as positive energy. For Trend Signal it has a special meaning. It is not just any trend, but the meaningful trend that is interesting. A trend should be powerful and smooth, but most importantly it should have a reason that can be interpreted. The higher the Signal strength of the trend is, the more the odds are bent in favor of the investor.
Some pointers to zero in on this real secret:
The best trading systems – It is impossible to nail the best trading system, but there are some better and many worse ones. If you search something that really works, start here. These systems are recommended for trading our stock picks. They are also recommended for any investor trading the Trend Signal style, which means combining trend with potential in some way.
Here is a complete list of all systems for trading stock alerts and here another one of all trend signals.
Why so many? There is no such thing as the perfect system. Also, markets are changing, at least in the details of price behavior. Trading is also evolution and every trader should have an open mind.
Many don’t have a real system at all and those who think they have should constantly rethink what they are doing. We don’t mean to second guess the current trading action that your system dictates. That would be lack of discipline. It is the system itself that is questionable, principally. Consequently we have this section for trading system ideas ranging from robust to far fetched. Enjoy the journey, at times it is also fun.
The right system for you – Trend trading is an art. Right, it has been said already and it doesn’t sound like a secret, but the more you believe this simple thing, the greater your trading success will be. In other words, you have to find your system and then you have to optimize it.
Trend trading secrets – A post from our blog is offering a slightly different perspective. Just for showing you that trading is indeed an art. If you look for the secret you won’t nail it in a simple way. Pursuing the optimization of the right trading style for you is part of the secret.
System Signals – Trend trading is an art and not science. There is no such thing as a definitive answer for the best trading system. Trading as an art is a lifelong experience.
The Zen trader has a special system for trading penny stocks.
The trend scalper trades automated the smaller swings in a longer trend. This is one of our favorite trading systems for using our trading alerts.
Some more magic is necessary if you have no trading capital anymore.
Here are just two examples how different trading systems can be. Trend trading may mean:
- to combine entry and exit automation with the right trend selection by you, or the other way round,
- getting the trading idea from elsewhere, a computer algorithm or a site like Trend Signal, and entering the trend with a tight stop by means of manual day trading.
The humanoid automation of the trading part cascaded with the selection of the right long-term trends with human intelligence is exactly what a Trend Scalper does. At least by our definition.