Trend Trading To Win – Generatebucks

What is a Trend trading to win?

Trend trading techniques are usually followed by analyst who aim to grow their portfolios and prefer to invest for a certain period of time. You might have heard stories of traders making huge profits in market following a trend.

Trend trading to win - Generatebucks

Trend trading to win - Generatebucks 

Most people who enter the market without doing their homework tend to lose money since they choose to invest based on a certain short term sentiments. With trend trading, traders aim to make certain amount of profit by following trends based on fundamental and technical analysis.

Profits are recorded based on an investigation of the momentum towards a specific direction of an asset. A trader ABC would opt for a XYZ company , based on its trend and fundamental analysis, trader then aims to sell or buy XYZ for a  certain period of time till he is able to get closer to his aim.

A simple way to explain trend trading to win would be through the following example. Observing the trend based on trade war and other factors sold Zinc futures contract in March for 223. I was aiming to square off my position around 210. Thus following a simple downward trend, I landed up making 65000 on each unit.

Is trend trading easy?

Looking at the above example you would feel, it is simple and easy. Yes, trending trading is simple but at the same time you need to be careful. If you follow a wrong trend, then you might land up losing everything. For example, I buy Copper futures at 448 and the trend is downward, I would be land up losing. 

How can you identify trend?

Once you pinpoint the money making tendencies, you may take advantage through developing knowledge about its patterns and benefit out of them. In the market today, trading according to trend is a good idea since there is so much volatility. With increase in volumes, most traders involved in intraday tend to lose money or make less profits.

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To identify trend, it is important to develop knowledge about patterns and study the stock or commodity well. Not only will trend trading tendencies make you some money, it will make you more aware of about market situations. The key lies in studying and doing your homework well.

You need to spot a trend looking at the chart and follow it. It might not be perfect point to point study but a rough idea of a range might help. Spotting a formation in prices could help you judge when to buy or sell.

For example, looking at the charts of Copper, it is clear that Copper futures have not been seem trading below 390, so buying Copper futures around 400 can be great for a trader.
Charts analysis and regular study about the certain stock or commodity is must.

It is important to figure out market weakness and strengths while investing. There are regular patterns that can be accessed through charts and strategies could be formed and followed. Stock trading software platforms is available to show you how to do trend analysis. Profitable trends occur a few times in the market.

Mastering a few proven and tested trend trading techniques to win will lead to regular profitability. We at Generatebucks, aim at taking advantage of these trends and give you a better analysis that could lead to a win. Subscribe here for regular updates

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