Trend Trading is a type of strategy that is used when investing money in the stock market. It can be used for a variety of different kinds of trading from mutual funds to Forex trading. There are different ways of trend trading as well. Some traders will focus on long term trends and what is expected over several months or even years. Others will focus in on intra-day trends or trends that last just for a few days or weeks. We'll focus on the longer term trend here.
The first thing you want to do when you are considering trend strategy is to figure out how much of your savings that you are willing to put aside and use for investing in the stock market. You should only use money that you are not going to need say within the next five years. Money you need for any sooner should not be used because of the high risk that all trading has.
You need to make sure that you have at least one hour a month to sit and review what you want to do when it comes to the trend trading that you want to do. Another good thing is to make sure that you start reading a blog that is called Stock Trend Investing and get your self familiar with this kind of trend trading and then make sure to sign up for their free e-newsletter they send out.
You also will want to claim a risk free membership with Stock Trend Investing and make sure to review items in the Gold Members section each month. Make sure to take a look at the Initial Trend Expectations for all the different stocks from around the world. It's good to look for the different trends from different continent.
You should try and base your decisions on the trend information that you receive and then make the decision whether you want to sell your current investments or if you would rather hold onto them or simply go and increase your investment. This kind of Stock Trend Investing is the kind of trading strategy that will focus in on investments that are in index funds, ETF funds and Mutual Funds.
You should also consider getting a hold of either a broker you have already worked with or sign up with a stock broker that you feel you can trust, someone you know or someone that has been recommended to you by someone else. Because you may want a broker who knows what they are doing to actually execute your investment trades. They tend to be less emotional than the person who is actually investing the money.
It's also a good idea for you to start off with smaller amounts of money when you first try Trend Trading at least until you feel comfortable with this strategy. One thing that you shouldn't do when you are doing the more long term trading is not to check the value of the market every day. That is just a waste of time, just check it once a month. If anything important happens your stock broker will let you know.