How to catch a trend

How to catch a stock trend and ride it up

  • Its all about putting the odds in your favor by minimizing your stop losses to the maximum extent possible.
  • Retry to enter.
  • Pay attention to the fundamentals of a stock. Has the company growth potential? More importantly: Has the stock potential for a price addvance?
  • The entry signal. Astonishingly many methods do work. Probably more important than the setup itself is to choose one that fits you. You must feel comfortable to execute it.

How to not catch a trend

  • Try to make 100% infallible predictions
  • Hope that the market will turn around or even average down after your position moved against you.
  • Analyze the stock, the market or the trend with technical analysis nitpickingly.
  • Be discouraged by high multiples for earnings per share and price to sales ratios. But beware - this holds only true if you think there is still price potential.

The opposite of catching a trend

  • Act on tips, investment letters or brokerage info
  • Try to buy cheap or to buy value

Forex   Under the millstones of the banks
Futures  Hoping for the trend and finding chaos
Options   Above average? You will still lose!
Stocks   The negative-sum game for investors