The Trend Is Your Friend In Trading
If you've been a day trader for any reasonable period of time, you will almost certainly have come across that age old adage that says, "The Trend Is Your Friend". Well, I have an important announcement to make about that right here:
It's absolutely true!
Indeed, I was browsing in Jack Schwager's excellent Market Wizards books a while back, and could not help but be struck by how many of the top traders he had interviewed emphasized the critical importance of always trading with the main market trend. It was something that all the truly great traders he interviewed had completely in common, so much so that it is almost a law of online day trading.
It's absolutely true!
Indeed, I was browsing in Jack Schwager's excellent Market Wizards books a while back, and could not help but be struck by how many of the top traders he had interviewed emphasized the critical importance of always trading with the main market trend. It was something that all the truly great traders he interviewed had completely in common, so much so that it is almost a law of online day trading.
The Trend Is Your Friend
Often, the simplest things can actually turn out to be the most profound and yet be completely overlooked precisely because it is simple. So definitely, you must whenever possible trade with the major trend and create trading systems and tactics to aid you in doing so.
Now, trading with the trend does NOT have to mean that you must enter near the beginning of the main trend and exit near the very end of it. Actually, if you only capture half of the total move or less, you can still do very well. Indeed, there are a variety of ways to interpret what trading with the trend actually means to begin with.
As a simple example, if you are a day trader, the trend for you might just be the intra day move only...
To read the rest of this online day trading article and hear the podcast, click the link.
Asoka Selvarajah
Now, trading with the trend does NOT have to mean that you must enter near the beginning of the main trend and exit near the very end of it. Actually, if you only capture half of the total move or less, you can still do very well. Indeed, there are a variety of ways to interpret what trading with the trend actually means to begin with.
As a simple example, if you are a day trader, the trend for you might just be the intra day move only...
To read the rest of this online day trading article and hear the podcast, click the link.
Asoka Selvarajah
Trend Trade Systems
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The Truth About Day Trading Stocks: A Cautionary Tale About Hard Challenges and What It Takes To Succeed (Wiley Trading)
Amazon Price: $37.80 (as of 12/30/2009) 
Trading Stock Options: Basic Option Trading Strategies And How I've Used Them To Profit In Any Market
Amazon Price: $12.95 (as of 12/30/2009)
Trend Trading for a Living: Learn the Skills and Gain the Confidence to Trade for a Living
Amazon Price: $26.37 (as of 12/30/2009)
by OnlineTradingRebel
Name: ASoka Selvarajah
Age:47
Location: Nevada
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