What is Trend Sigma trading?
Sigma is a Greek letter that is used with various meanings in science and mathematics. In statistics it denotes the standard deviation, which is used as a measure of confidence.
Trading is statistics and traders need some sort of confidence. That's why I chose this name for a style of trading or investo-trading that results in less stress and work combined with huge profits.
Details are necessary and so we have an overview about principles of a Trend Sigma trader. If you are interested in riding megatrends the relaxed way or finding promising short-term moves, this may be for you. If you are more short-term oriented, it is also important to select the right trends. Call them true trends if you like, statistically your chosen horses have to have fire under the hooves.
Trend Sigma offers financial market news mainly for momentum traders, trend riders, growth investors, and new era speculators. You could also subscribe to our blog for finding chances and getting early into real trends of different time horizons:
Outside of the box
Below is a selection of trading systems that demonstrate that Trend Sigma trading works also by thinking outside of the box.
Our standard method, the trend trading system, is all about trends. It even concentrates on the best of them. Trading like a Zen master is almost the opposite of trend riding. Essentially the Zen trader is going to bottom fish for the momentum stock. Sounds really like Zen… The fishing grounds are the small cap […]
Sounds like a contradiction, but it can become reality. You just have to know where and how to search the high flying bottom bouncers. Of course, this “value momentum” trading system works only probabilistically. But that is the nature of trading anyway. So, where to look for these mysterious bottom momentum stocks? In the small […]
Penny stocks and trend trading, will that work? The problem for small cap stocks is the lack of continuous interest. Under such circumstances clear trends are rare. The reason is that money pours in with single thrusts and the gaps between them may be filled with terrific pullbacks. This trading pattern is not even inviting […]
Trend investing into ETFs may be the most convenient way for many to do the best with their money. ETF trend trading is the more safe and relaxed version of swing trend trading stocks. It is reasonably safe to put money into ETFs, because they are funds and as such diversified. There is a vast […]
Trend trading is fine when there is a trend. But what to do when there is only volatility in the short run and the price always comes back? This is the heaven for swing traders, but is doesn't need to be hell for trend traders. For one, there are always independently moving investment targets. We […]
Trend investing doesn't sound much different from trend trading. Both work with trends, but the trend investor is the relaxed one. While there may be different entry methods for trend investing, one thing should be clear. If the price is up from your entry, the relaxed investing phase has begun. From there on the trend […]
Trend trading could be the easiest and most lucrative trading style. There is just one caveat and that is the entry. If you manage to enter trends safely, you have turned on your private money printing press. The real problem is of course that only a fraction of all spotted trends go ahead after you […]
The natural way to trade is to cut losses short. If you don't keep them in check, you are an investor. Otherwise you are trading. Swing trading inherently makes use of the stop loss method. If after the entry the price swings into the wrong direction, any sort of swing trading should interpret that as […]
Growth stocks are at the core of the stock market. They are the final legitimation of the stock markets and they are or should be central to wise investor's operations. But are they also for traders so important? From day trading to arbitrage, there are all sorts of trading styles possible, so why just concentrate […]
Combining different trading systems may lead to astonishing results. We always wanted to marry the investor with the trader and put together the advantages from both market philosophies, right? Promising as a starting point looks the modern version of value investing, which is of course growth trend investing. The selection of growth stocks that are […]
One thing that the chartist loves most is waiting for his favorite pattern to occur. If he is more flexible, he watches the market detecting various patterns. Human beings are pattern detection machines. Looking at a chart will almost always find some trading chance, which, of course, isn't real in most cases. A simple chartist […]
The swing traders consider themselves often as the happiest of all traders. Prices go up and prices go down and they make money all the time. But this is an illusion. One that could become quickly expensive. In a market that produces smooth swings, swing trading works exceptionally well. Unfortunately this is the wrong criterion. […]
Constructing one of the best trend trading systems may be achieved by combining what is good on its own for trend following. If the technical side, the trend in a chart, is aligned with the fundamental part, an uptrend of earnings and revenues, the odds increase for the trend trader. Either the trend price pattern […]
Momentum trading is the never ending hunt for high velocity moves of huge volatility stocks. It could be conducted as trend following or breakout trading. Reading the news and hammer in the next buy order before everyone also does it may also work. But combined with value investing? This sort of boring thing that relentlessly […]
How to get early on board of a trend? This could be one cardinal question for trend trading, of course depending on the view point, meaning the trading system. The short and simple answer could be just to wait for breaking news that has price appreciation potential and jump in. There are more advantages than […]
There are two reasons why the trend is the best chart pattern. First, the probabilities that any other chart pattern just occurred by random is much greater than with a trend. This is of course dependant on the clarity of the pattern, the sharpness of the trend and the time or number of bars that […]
This is a special form of entry technique to get onto a trend – that isn't there?! Yet! Normally one would wait for a sharp trend to show up, then establish the position only to see the trend vanishing in the next moment. The idea behind the “there is no trend” trading system is of […]
The smoother a trend the better is it. This is especially true for very rough or swingy trends. If a trend has since a month no single day a pullback, it may be more or less equal to one with a one or two day dip. But if the pullbacks are stronger, we need a […]
Some classic trading systems and general analysis
Trend System LX
Alternative trading systems & investing strategies
Breaking the high of the day
Breakout trading systems
CANSLIM Stock Trading System
Darvas meets Livermore
Entering a trend at a new high
Entering the trend with a swing trading system
Forex - beaten by the spread
Forex trend trading
Futures trading - a survival game
How to catch a trend
Nicolas Darvas boxes system
Nicolas Darvas dar cart
Options trading - the system to lose
Stock Market? Don't be the Investor!
Support and resistance
Swing trading tricks
The scalping daytrader
Trading legend Jesse Livermore
Trading systems for stocks, Forex and options
Trend Sigma System
Eternal sync with the markets to you,