Trading Stock Trends
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Stock trends are a very important indicator that can give you an idea of the direction of the stock whether long term or short term. Short term stock trends will give you an idea of the direction of the stock on a short period of time. Once you are able to connect three points on the bottom of the tips of the candlesticks you will be able to draw a short term line indicating the trends. Once that trend line breaks to the downside this is typically a great indicator that the chart may be ready to dip back down into a new short term downtrend. You want to correlate how you utilize these stock trends based on your favored trading strategy. Are you a short term trader? Swing or long term trader?
It is very important when trading stocks to figure out what type of trading methodology works for you. If you are a fundamental trader you may be scanning for stocks that are potentially undervalued and therefor looking more towards future growth. In this particular situation you would be more interested in the long term stock trends as indicated in the video above. If you are a short term trader and looking to hold a stock for a maximum of a few days you would surely be more interested in the short term stock trends.
Identifying and understanding your own personal trading strategy is the key to successfully using simple trends indicators to your advantage. These small indicators when used in conjunction with each other correctly can significantly increase your potential for steady profits. Nothing is better than a nicely timed entry and exit! When you know the direction of the stock trends you can utilize the stock trends to put some easy profits into your pocket.
Mastering stock trends is no harder than not cutting corners. If you are trading penny stocks then obviously you are utilizing live charts and L2. Or at least I would hope so.. When you get up in the morning during pre market draw the trendlines on the stock chart of the penny stock that you are planning on trading. Once the trend breaks quickly scan the other indicators that you have set up on your platform and make a quick emotionless action to act on your gut based on the indicators. If you are thinking twice about selling a stock 9 times out of 10 that means that you shouldn't be in it. Trust me.. If you are wondering if you should be in it, what do you think the other traders are thinking? The same thing. The good traders are already unwinding their positions even if that means they are leaving with small profits.
If you could add an easy 10% profits a day to your trading portfolio you would be shocked at the results after 30 days. You will make mistakes, that is completely normal. Take the opportunity to learn from those mistakes and put stock trends in your toolbox of capable skills!
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