Archive for July 15th, 2007

As they say on Wall Street the trend is your friend, so if you want friendly trading then maybe trend trading is the route to go.  Trend trading is a form of technical trading that follows a specific trade.  This type of trading calls for trading both the long side of the market and the short side of the market as long as you trade on the same side as the overall direction of the market (the trend of the market).

Trend trading may be utilized by both short term traders and long term investors as well.  The formula applies to both the long term trend and the short term trend as well as defined the specific time frame and risk tolerance of the specific trader who utilized the trend trading strategy.

What makes the trend trading strategy hard to swallow by many long term investors is the fact that selling stocks short is just as important as buying stocks.  Many investors think it is morally wrong to sell stocks short and therefore do not make good candidates for the pure trend trading approach.

Learn more about stock trading