Trend Trading

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Why Trend Trading Is So Effective

Trend trading is a common and long-standing approach to trading for good reason: It works! Following are some reasons why, so you don't have to blindly accept the premise — and also because understanding [more…]

Understand the Other "Energies" You Need to Trend Trade Profitably

As good as trend trading is, trend shouldn't not be the only factor in considering whether or not to take a trade. Other factors must be added to it to provide enough variables to create a probability [more…]

Managing Your Risk

All types of trading are risky, including trend trading. No matter what type of trading you do, not employing risk-management techniques in your trading is fiscally irresponsible. Here are few techniques [more…]

Trend Trading For Dummies Cheat Sheet

The practicality of trend trading is that you're waiting for the market to "show its hand" by establishing a clear direction and then jumping onboard for the ride. This handy Cheat Sheet provides an overview [more…]

10 Habits of Highly Effective Trend Traders

Trading is a performance-based profession. You’re pitting your wits and skills against the market, which essentially means you’re competing with other traders. Human beings are creatures of habit, and [more…]

10 Common Misconceptions about Trend Trading

One of the primary reasons traders fail is that their minds are filled with misconceptions about the reality of trading. Those misconceptions make trading seem easier than it is. Ten of those misconceptions [more…]

Figuring Out What the Trading Trend Is

Trend trading begins with determining the trend. The trend of the market is defined as the long-term direction of the market. But how do you determine what that direction is? [more…]

Why the Trading Trend Works

Trend trading is one of the most popular approaches to trading. It’s been around for decades because it’s a proven approach to making money in the markets. [more…]

Why You Should Trade with the Trend

The rationale to trend trading is if the market is already moving up, it’s given at least some evidence of its bullish bias so it makes sense to follow that. [more…]

Choose the Right Broker for Trend Trading

Your brokerage firm is the company that facilitates the transaction between the buyer and seller through a stock or futures exchange. It usually takes a commission for its service. However, the spot forex [more…]

Pick the Right Trading Hardware

The trading hardware you require depends on the type of trading you’re doing. In this context, hardware refers to your computer, monitors, network, power supply, and so on. [more…]

Leverage and Margin in Trend Trading

One of the secrets to wealth is the use of leverage. In short, the principle of leverage, as applied to making money, is to use a small amount of money to control a large asset. [more…]

Overnight Gaps and Trend Trading

Overnight risk refers to the risk of what happens to the markets while you’re sleeping or while the exchanges are closed and you’re not able to exit your positions. During this time, your money is exposed [more…]

Trend Trading and Trading Halts, Suspensions, and Curbs

An area of risk in trend trading is at the exchange itself. Some of the following situations are rare, but they can and do occur. [more…]

Trade with the Trend and Get Big, Winning Trades

One of the most important advantages of trading in the direction of the trend is that when done correctly, your winning trades are much bigger than your losing trades. This advantage is stated right in [more…]

Avoid Choppy, Chaotic Market Movement with Trend Trading

Amateur traders often complain that they make some money trading and then they soon give it all back (and sometimes give back more than they made). This seesaw effect of making money and losing money over [more…]

Trade with the Trend for Confirmation before Entering the Market

It’s often said that trend trading gets in “late to the party” because trend is a lagging indicator. That statement definitely holds some truth. Amateurs often hear the term [more…]

The Disadvantages of Trend Trading

Trading with the trend seems like an obvious choice for a trading methodology. It seems easy enough, but it’s deceptively difficult to do. Of course, if it were easy, everyone would be doing it. [more…]

Wave Theory and Trend Trading

On a chart, you see the price pattern of a stock, commodity, or currency make some short-term moves against the long-term moves of the trend. This oscillating pattern is akin to the human experience of [more…]

Elliott Waves and Trend Trading

The term waves is most often associated with Elliott waves. Ralph Nelson Elliott developed the Elliott wave theory. Elliott wave theory can be very detailed in its rules and complicated in its application [more…]

Fibonacci Levels and Trend Trading

After developing his Elliott wave theory, Ralph Nelson Elliott observed that the wave patterns relate to the Fibonacci sequence. The Fibonacci sequence [more…]

Objectifying Waves for Trading Clarity and Confidence

The theory of the market moving in waves is a valid and useful concept to keep in mind. However, you may prefer to trade with completely objective rules. [more…]

Staying on the Right Side of the Market with the ADX

ADX measures trend strength by calculating a moving average (typically the 14-period moving average) of price expansion, using average true range. These terms are defined in the following list: [more…]

Trading the ADX Indicator

Two elements to the ADX indicator that help determine whether the market is trending up or down are plus directional movement (+DM) and minus directional movement [more…]

Bollinger Bands and Trend Trading

Bollinger Bands were created by John Bollinger in the 1980s, trademarked by him in 2011, and have enjoyed a wide following by many technical analysis traders. You can use them to help determine trend, [more…]

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