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Stock Trading - The Trend Is Your Friend (Wanna Bet?)
We've all heard it many times. The trend is your friend. The trend is your friend.
Perhaps or perhaps not. I mean look at it this way. Do most people who trade the stock market make money trading it?
The answer is no. I don't have numbers for the stock market, but in the futures market something like 90% of traders lose money. It's probably similar in the stock market as well.
So the trend is your friend. Everyone has heard that. Many are trying to trade that too. And many are losing money in the market as well. So, perhaps the trend isn't your friend.
Have you ever noticed that only professional traders talk about "fading"? (Fading is going against the current trend.)
It's true. Fading is something that only professional traders do, and they make is sound dangerous. They warn people against doing it. Etc, etc.
Well, I'm here to tell you that done judiciously, trading against the trend can be very profitable. Of course, if you jump in at the wrong moment and don't cut your losses short, you will lose money.
That's just it, you need to do all the things that professional traders do to play their game. Cut your losses short and all that.
But fading is a very valid way to make some nice profits, and some of the best ways to find places to fade are gaps. When the market gaps, you can fade the gap. Gaps are filled something like 80% of the time, so it is a very high probability trade.
Do you want to learn more about how I do it? I have just recorded a 25 minute CD called "How To Pick Winning Stocks - The Secret Formula"
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