Making the Trend Your Friend

If you see a chart, you can see peaks and troughs or in simple words pointed mountains and deep channels. It is clearly visible on line charts. These are nothing but prices moving up and downtrends. Most of the time prices moves in trend and trend sometime last long period of time. Understanding trend

Understanding trend

A trend has three direction depending upon their bias. One is uptrend in which there is demand in the market and prices start moving upwards because of that. After that comes downtrend which result due to continues selling or lack of buying in the market. And when prices start to trade in range it called as sideways trend, this happens when majority of the crowd is undecided. You can see different trend of same stock changing chart timeframe, and their significance changes with timeframes.   Monthly or weekly chart price trend often called as primary trend, daily or weekly chart price trend comes as secondary trends while intraday to daily price trend as tertiary trend or near term trends and only important for day traders. Using trend

Using trend

Identifying trend and riding on them is best way of making profit out of the market. That why there is saying that “trend is your friend”. If you go with trend then there are more chances of making big money than going against the trend or entering in sideways trend. Amateurs always try to avoid going against the trend or entering in sideway trends because most of the time it cost them time as well money.   Each and every technical trader’s job should be preventing and controlling their losses than absolute profit hunting. Technical traders approach to every trade should be more risk-reward based than like value investing.   Technical trading means to trade with a plan that is comes with managed risk and potential gains ahead of time. That why each individual is unique and has its own trading plan which match with his trading style and risk appetite. Successful traders

Successful traders

If traders start trend following with discipline trading then it surely reflect in you trading account. Because anybody can get lucky once but to make consistent profit you must have trend-following plan with controlled risks.   Expert traders known expression is that “cut out the losers and run the winners”. This comes with experience and make difference between regular trader and successful trader.   For investors, good timing means everything. That why they always try to find bottom for best long entry or top for best short sell. Professional investors always follows buy and accumulate in uptrend and sell on rise in downtrend for capital growth.

The Author

Pramod Baviskar

Professional Market Trader And Owner Of Dalal Street Winners Advisory And Coaching Services. Working Since 2007 And Online Presence Since 2010. We Provide Highly Accurate And Professional 1 Entry And 1 Exit Future, Option, Commodity, Currency And Intraday Stock Tips On Whatsapp With Live Support And Follow Up.
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