January 2, 2015
Wishing you a greater 2015!
Trading only happen when there is trend. No trend no trade!
Before a trade can make profit from the market unless there is trend. Either uptrend, bull market or downtrend, bear market trader will make money. When there is no trend, there is no price difference; there is no profit when trade.
Trend is when PA of a market forms a high, and higher high, and higher high or PA forms a low, and lower low, and lower low. A trendline is a line draw across the highs or lows of a market.
Bull market is when trendline is ascending the trendline acts as support, and Bear market is when trendline is descending the trendline acts as a resistance.
Trading is Not as Simple as ABC!
Trading is not as simple as ABC; buy low sell high! It is so easy to understand, but it is so difficult to execute. 95% or the true 99% of the new traders get wipeout in the first three years! Many never return to try again!
Among all the basic skill, identify trend is the first step forward. Identify trend is like know where the traffic come from. Without understand the trend direction is like crossing the road without knowing which direction the traffic is coming from.
Trend is Your Best Friend!
Knowing the trend is very important, that is why in trading “trend is your best friend”.
Trend can only determine, when the trend complete. If anyone can read the trend ahead of time, the trader stands chance to win the trade. Why say stand a chance? It all depend whether the trader ride the trend the let the profit run!
Once a Trend is confirmed, it will continue for sometimes.
Look left and plan right! From the Chart, you try to identify the trend! When you confirm your finding, you plan your trading strategy.
Chart worth a thousand words! What is your trading strategy for 2015:
Straits Times Index, STI January 2, 2015, 24 months data
In 2013, market is downtrend. 2014 market is uptrend. What is 2015?
Thanks for visiting the site.
Moses
DISCLAIMER
Stock trading is not a get rich quick scheme and it is high risk.
Information provided here is of the nature of a general comment only and no intend to be specific for trading advice. It has prepared without regard to any particular investment objectives, financial situation or needs. Information should NOT be considered as an offer or enticement to buy, sell or trade.
You should seek advice from your broker, or licensed investment advisor, before taking any action.
Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here. It should be used as learning aids.
Trading is personal. You are responsible for your own trading decision.
The comment is the author personal experience. There is no intent for your believe and follow.