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Market Trend Signal™ is the leader in Trend Following, Market Timing and Stock Ratings. Clients receive access to stock ratings on over 8000 stocks as well as market timing trend following signals on all major markets and sectors. Market Trend Signal™ provides users with an easy to use market... More
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  • How to Make Money With Trend Following Investing 1 comment
    Dec 14, 2009 8:55 AM | about stocks: SPY, XOM, XTO
    How to Make Money With Trend Following Investing

    Trend following investing is used by institutional investors and hedge fund managers. Trend following, which doesn’t require an inordinate amount of time and research, also makes sense for independent and self-directed investors and traders. In this article, we’ll discuss how you can use trend following techniques to improve your chances for higher returns.

    Look for strong, consistent price movements. Trend following is based on the assumption that prices that are rising tend to rise more, until they fall. And when they decrease, they tend to continue to decrease.

    Select an entry point. According to professional traders like Van Tharp, the entry point is the least important aspect of a trend following system, but it can still give you an edge in the price.

    Don’t follow losing positions by setting stop losses. Not every position will be a winning position. In fact, most won’t. But by setting a stop loss to limit your losses, you avoid catastrophic losses and concentrate your money in winning trades.

    Let your profits ride. Continue to allow your winning positions to increase, but follow strict discipline to take profits off the table when the trend weakens.

    Use position sizing. Rarely invest more than 5 percent of your account in any one trade. An excessive position size will increase the risk of a catastrophic loss.

    Realize that an increase in leverage is an increase in risk. Leverage is an important tool for investors. Used correctly, it can swell returns. However, if your trade goes against you, it can compound losses.

    Market Trend Signal™ trend following stocks trading system

    Jesse Webb
    Market Trend Signal™
    Trend Following Stocks – Stock Ratings – Market Timing

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    Stocks: SPY, XOM, XTO
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  • User 525453
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    Trend following for the rest of us. The simplest way to profit from up and down markets with a trading system that works.

     

    www.trendarchitect.com
    19 Dec 2009, 12:22 PM Reply Like
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