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Wednesday, January 7, 2009

Trend is your Firend

Anyhow much of time heard it to you, it is worth to still hear it. You must trade with the tendency and not against it if you never envisage on being succeeded at the stock market.

It can be difficult to trade the same direction that the market particularly when the prices fell so much. You will find periods when the average actions trade to 70 or to 60% of what they were one year ago. That makes it extremely hard to suppose that they will continue the fall.

It accumulates to recommend it to go to buy all these stocks with a discount and to await the gathering to start. But you cannot do that. If the market is in tend fall it is to go probable to reduce to tend.

Worst losses I ever tested were when I however the market had to start to turn around. Other side that the best profits I ever tested was when I traded with the tendency even when I thought that it would turn around.

There are too many people trying outside to buy at the bottom and to be sold with the top and arriving there burned. Reality is that there is no manner of saying where the bottom or the top is.

So actions have 50% fallen there is always part to fall. I saw the abundance of the fall 90% of stocks in year. They harmed each r飯lteuse the lower which entered them. I also saw many companies that do not go anywhere the file for the bankruptcy after fall.

On the one hand stocks which trade to 2,3 or 4 times so that they should trade should not necessarily fall. Who knows that the actions could be on the edge to make the largest gathering they ever saw.

In the stay runs with the tendencies, not each test fight it and you will be much easier

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