Trend is your Best Friend in Trading

Trend is your Best Friend in Trading

One of the Warren Buffet’s principles is to trade with the trend and that actually is the correct and profitable way to trade. We should first identify the trend whether the trend is upward or downward. There are many trend identifying indicators which tell us about the trend such as moving average. It identifies whether the trend is uptrend and downtrend and according to that we can make buying and selling calls.

We can use the Indicators to determine the stocks trend, like wise we can use crossover pattern in MACD to determine the change of trend.

Market timing is an important factor while trading, the timings of entry and exit is very important. We can make profit than the others if we enter and exit when everybody is still in the trade. We should predict the early signals given by technical analysis indicators and act accordingly

To identify the trend and take a trade with that trend is as important as playing the game and winning it.

Greed should be controlled and always learn to book profit when trade executes, it compliments the technical analysis.

Will talk more on trading aspects and topics in next coming blogs.