Staying with the trend
Stocks trend, that is what they do.† So many people try to fight the trend by picking the top and the bottom.† That isn't the smartest thing to do.
I hear a lot of people talk about finding the bottom of a crash or finding the top of a rally, particularly this rally we have recently been having.
There is always news out there somewhere that a trend will not continue for one reason or another, but sometimes it is best to ignore all the noise out there and just go with the trend.†
There are many reasons to just hop on board and ride a trend regardless of what the noise thinks.
1.†††††† The Markets are hard to predict
The markets are hard to predict.† That is why there are only a handful of people who have ever pinpointed the exact tops and bottoms of a market, and those people are often wrong many more times than they are right.
Instead of trying to find the exact bottom (or top) it is much more profitable to ride the trend and let the market tell you where it is going.
2.†††††† If it Works Go With it
The markets are irrational more often than not.† If you find a river that is flowing uphill you donít argue about how it doesnít make sense and try to paddle your boat against the current.† Instead you ride the current uphill because that is the only way you will get somewhere.
If it is working donít ask when it will stop, just go with it until it doesnít work anymore.
3.†††††† Can Cut Your Losses
If a trend ends you can always cut your losses short and move onto the next trade.† You donít need to stay through all the ups and downs and hope that in the long term everything will work out okay.
For more on the stock market visit http://www.stocks-simplified.comFor some stock tips visit http://www.stocks-simplified.com/stock_tips.html
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ABOUT THE AUTHOR
When I was young I wanted to learn how to trade the stock market.† So I traveled around the country listening to professional traders talk about how they are making money in the market.† Now I understand how easy it is to make money in the stock market and started a site http://www.stocks-simplified.com †to help others learn.