Book 1 trend following volume 1

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TREND FOLLOWING FIRST VOLUME

HTTP://WEALTHTIMING.COM AUTHORED BY: The Editors at Wealth Timing


LEGAL NOTICE

Limit of Liability/Disclaimer of Warranty: The author, editor and publisher have used their best efforts in preparing this book and make no representation or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for any particular purpose and shall in no event be liable for any loss of profit or any other commercial damage, including, but not limited to special, incidental, consequential, or other damages

Editor:

TREND FOLLOWING VOLUME 1

The Editors at Wealth Timing

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TREND FOLLOWING VOLUME 1

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TREND FOLLOWING FIRST VOLUME

TABLE OF CONTENTS

5 Reasons Why Trend Trading Is Better Than Buy-and-Hold Investing …………..…………. 6 Reasons Why You Need To Adopt a Market Trend Timing System …………………………..... 8 How A Market Trend Investment Will Allow You to Retire Years Earlier ……………………… 10 Some Advice from Richard Dennis the Father of Trend Following Systems ……………….. 12 Learn How to Use Some Money Management Strategies ……………………………………………. 13 The Importance of Discipline in Actively Managing Your 401K Plan ……………………………. 15 The Importance of Actively Managing Your Market Trend Trading System …………………. 17 The Origins and Beginning of Market Trend Timing Strategies ……………………………………. 20 The Stock Market Trend and Reasons Why You Need To Learn ………………………………….. 22 Learn About Trading System and the Merits of Trend Timing System …………………....... 23 Use a Trend Following Investment Strategy …………………………………………………………………. 25

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Why You Have To Be Persistent If You Are To Become Prosperous …………………………….. 27

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5 Reasons Why Trend Trading Is Better than Buy-and-Hold Investing Today there are several popular views that have been considered as regards investing strategies. The traditional method of buying a stock and letting it grow before selling has been known to most people. Before you consider investing in this method yourself, open your mind to a plan that is growing steadily in popularity. This method is trend trading. It is a trading business based on trends. Here are 5 reasons why trend trading is better than buyand-hold investing. Easier to L earn and Apply the Concept

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A trend trading investor has a lot to learn about trends and trade analysis. There needs to be adequate understanding of the market and its trends along with the technical indicators. Things that are learned here can be applied to stocks in general even without prior knowledge on the stock in question which makes trend investing one of the best means of investing in the markets, save for the conventional buy-andhold method.

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Potential for More Pr ofits In buy-and-hold business, an investor buys a stock that is currently trading at a lower price and sells it as the stock value rises. The investor makes profit by the difference between the stock’s current price and the price at which it was bought. This sounds good; however, stock prices do not always rise up. Trend traders however take this advantage by buying and selling according to the ups and downs assuring profit.

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Flexib ility In theory, the buy-and-hold philosophy can be applied for any length of time but it’s appropriate to long or intermediate investment terms. Trend trading offers profitability even for the day, week or year. It also makes efficient use of the situation at hand. When the trader wants to retire from the market, profit will still be guaranteed regardless. Very Little Guesswork The decision making in trend trading business operates from watching and extracting information about objective technical indicators through to conducting research on particular stocks. By observing the overall trend, a trend trader is able to make significant judgments concerning their stocks and it is very difficult to enter transactions on a gamble through this way. Therefore this is one of the most efficient means of investing in the stock market. Trend Tr ading is A bout the Investor Trend trading is largely dependent on the investor and the skill he possess, while the profitability of buy-and-hold method is determined by stock price movement. Trend trading is about how the investor interprets the changes in the trend in order to come up with a new business plan.

TREND FOLLOWING VOLUME 1

The buy-and-hold investment has played a crucial role today’s stock market development. Even though this method could easily signal the end of financial concerns for a lot of people, it is fast becoming impractical when applied to the business world today.

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When you consider however the reasons given herein why trend trading is better than buy-and-hold investing before getting into a financial transaction in the stock markets, you can rest assured that your trading will be more or less easier and more productive than if you were to carry out the same through the conventional methods of trading.

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Reasons Why You Need To Adopt a Market Trend Timing System Many people are anxious one’s financial status and ability to retire due to the slowly receding Great Recession. The crash in American real estate prices has reduced the value of many estates that insisted higher returns of current investments. Increasing investment performance can be done by applying market trend timing systems. Let’s look at 5 reasons why the average investor should consider taking this approach to investment decisions.

TREND FOLLOWING VOLUME 1

Investors seeking long range growth of money take the common approach of buy-and-hold which offers simplicity and low overhead. But it doesn’t always work. Certain cases over the past 100 years showed that buy-and-hold results to overall reduction in investments value. Investment markets are becoming fierce that it is too risky to not maintain minimal level of trading.

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The decline of the value of pensions is another reason to consider. Some people still have vested interests in lucrative pension plans, but their percentage is constantly declining. This scheme offers market trend timing the advantage in the future. Most people will receive some retirement income from Social Security but the long term viability of this system is doubtful. It seems likely to continue into the future with possibilities of system modification to reduce its value to some recipients. This provides another reason for the individual to increase the management of their other investments.

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Mutual funds and other types of managed investments are easy ways to increase assets that’s why people commonly rely on them. Analysing closely, the overall performance of mutual funds isn’t great. Most of the time an investor can produce better results by spreading their money around almost randomly. In recent times people have gotten carried away by the notion that investors always act rationally and with close to perfect knowledge. If this was the case, then timing systems would not be able to beat the market. However, the market today is becoming an ever-changing environment which means that an investor needs to be knowledgeable enough to find ways of beating the market. Many systems available for making active trading decisions share one basic principle – buy low, sell high. The only problem is timing, knowing when prices are low and when they are high. Trend timing systems aims to indicate expected pricing trends to provide the investor guidance on their actions. If they work as claimed, they should provide significantly better yields. No single investment strategy works for everyone. Some don’t have the time or the nerve to make their own investment decisions. However, it is good to be aware of the options and their advantages and disadvantages. A market trend timing system may be a good choice for many investors.

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A lot of investors in the market today will contend with the fact that a market trend timing system is the best way for them to go, especially in the event that they are looking to earn more profits from the investments that they are participating in. With this in mind therefore you will need to try and make sure that you are also well in the know about trading using the trends.

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How a Market Trend Investment Will Allow You to Retire Years Earlier There are several compelling reasons to investigate how following a market trend investment strategy will allow you to retire years earlier. In this article, you will read about how market trend allows traders to profit with very little risk, you will see that it is beneficial to a longterm plan and that with this method portfolios can be selfdirected and are not dependent on outside sources. If you are interested at all in putting aside money for retirement, look very seriously into using a market trend investment strategy when deciding on a plan.

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Low in Risk While Providing Returns

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The first benefit of a market trend investment strategy is operating with the intention of cutting risks while still producing good returns. Considering how things change on the market, a low-risk strategy is best for starting a retirement fund. The other key is to make sure that the approach used will produce enough that a person can survive off it. Market trend investment does that by going with the market rather than against it. This allows it to keep itself low risk while producing returns regardless of whether the market has gone up or down. And that brings us to its viability as a system that can be employed for long-term purposes. Ideal for L ong Term Investing Trend investing can be used for short, intermediate, or long term investing. It works by using long term market trend rules in its application.

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The manner in which market trend investing is able to adjust to market conditions makes it ideal for the long term investing that you require in the event that you are looking to prepare for retirement. This is why portfolios can be self-directed and are not dependent on a particular company doing well. Allows People Independen ce Since this plan solely depends on the trader, it is possible for an individual to take greater control of a portfolio which is a huge part of the reason why market trend investing is suitable for funding early retirement. The success depends on the trader. Profitability on this approach relies on the ability of the trader to interpret changes in the trends and incorporating them into the business plan ensuring less share value decrease and difficulties. By itself, this can result in the types of profits that make it possible to have an early retirement. It is easy to see how following a market trend investment strategy will allow you to retire years earlier. Some of the advantages convey limits in risk at the same time produce good returns which gives possibility for long term success. Factors such as self-directed portfolio and independence from market movement, serve as enough reasons to consider market trend investing.

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Well, in the event that you are looking to make it in the market so fast and retire early, there is no other way than to try your hand at some of these investment strategies. You can rest assured that by so doing, you will be able to get the best results in as far as your investment is concerned.

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Some Advice from Richard Dennis - the Father of Trend Following Systems The trend following systems approach utilizes information gathered from different markets that may offer long term trends and seeks to work on it while profiting all who use the systems in the market. This system tends to make profits from the challenges of future markets. Taking some advice from Richard Dennis the father of Trend Following Systems can help investors understand how to trade in the existing markets. With such knowledge it will be a good idea for you to invest in the markets in the hope that you will be able to aptly break even and reap the benefits of your investment.

TREND FOLLOWING VOLUME 1

Traders that use this approach can use average market price calculation and channel breakouts to determine the general direction of the market and generate signals. Most traders don’t aim to predict any particular price signals and just jump on the existing trends and ride along.

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This also involves risk management component which uses technically three fundamentals – changing market schemes, current price in the market and the value of traded shares. Considering these factors, the trader can identify the market standing at the time of entry. The amount of stocks to sell or buy depends on volatility issues and size of the account being traded. Any change in the price may result in a gradual increase or reduction of the preliminary trade which may lead to an exit for the rest of the trade.

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The traders usually join the market after a trend has been well established. Due to this, they tend to ignore the preliminary turning point on profitability. In case there is any turn opposing the trend, the systems signals normally are preprogramed and will have to wait until the turn re-establishes itself as a trend in the reverse direction. If the system signal is an exit, the investor will renter as soon as the trend has re-established itself. One cardinal rule of this approach is that price is a main concern. Investors may choose to use different indicators to show where the price may shift next or what should be, but generally all this doesn’t work. An investor must be keen to what the market is doing and should be able to interpret it. Money management is the other crucial indicator of this trading approach. This is not about the timing of the indicator or trade but the decision of just how much to trade for that particular trend. The value of risk control cannot be underestimated. The moment the market becomes unsteady, the size of trading decreases which also leads to the trader’s position to decrease and trade size is cut back. When this happens, maintaining the capital until it subsidizes is recommended. Finally, if as a trader you decide to take some advice from Richard Dennis the father of Trend Following Systems, you will discover that this approach requires a systematic process. Time and price are central at all times and this approach is not based on an analysis of basic demand and supply factors.

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Learn How to Use Some Money Management Strategies

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Considering the state of the economy, it’s essential to know some of the best money management strategies and their significance to following investment trends. Understanding the depth of the strategies will enable you to sustain your financial stability. It is important for you to know that making just one mistake in as far as such investments are concerned can lead you astray. For this reason therefore you will need to use some of these tips to your advantage. http://wealthtiming.com Click Here to Learn More About the Stock Market Trend Following


The first thing is always make sure that you are in a position to pay yourself. It does not matter whether it is twenty dollars a week this will allow you save up for something you want to reward yourself with. This is often one of the steps that most people tend to miss due to the fact that a good number of individuals have become used to living week by week on their pay checks. Once you set some targets for yourself, you should try your best to make sure that you work hard on them and stick to it in order to achieve the results you desire.

TREND FOLLOWING VOLUME 1

The next thing you will have to consider is your credit score: The few numbers that comprise your credit score are very important. A credit score determines what type of person you are, to landlords and other companies. A decent credit score will show that you are a responsible person who is able to keep up with payments and uses money wisely. Some people believe that some credit card debt will help your credit score, but a study in 2008 revealed that was not the case. Never allow your credit card payments to elapse. Do not spend beyond your means.

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You also want to be careful with your savings: Savings are meant to be saved, not used to buy tempting products. Buy only necessary items. You should allow yourself a monthly allowance and never exceed it to have room for emergency funds. Take up a hobby in investment trend following: It’s a great way to make a few extra dollars. A few courses about this will allow you to learn when to buy and when to sell. Knowing those tricks can help your saving tactics, and you will soon be able to save more money and spend less.

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The best way to keep track of your money and ensure you do not fall behind is to have three separate bank accounts. One account should hold your bill money. The second account should be your savings and the third should be your play money that you use for food and entertainment. You should also determine a certain percentage to go into each one from every check you get. You should always take special care and educate yourself on money management. These were just some money management strategies and why money management is important for investment trend following. These two ideas go hand in hand, and with the proper education, you can know the perfect time to enter and exit the market without ever really suffering a loss.

The Importance of Discipline in Actively Managing Your 401K Plan

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It will bring so much anxiety and stress to save for retirement but being able to discipline one’s self in actively and constantly managing your 401k plan will be nothing but beneficial to you in as far as maintaining a healthy retirement plan in the future is concerned.

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There are numerous ways available to jump start this amazing retirement plan. Most definitely, the first step would be through your current employer. Each corporation has their own policies regarding this matter. Though some of them will allow participation after a couple of months, like at least three months to even a year, some corporations will consider this and allow you to sign up. Despite the fact that there will be a slight or at times significant difference in the amounts in retirement savings, it is still worth investing. This is especially so in the event that you are looking to get some funds for your life after retirement. It is for this reason why this trend has in the recent past become so popular among so many generations.

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Besides that there is also the fact that it makes no sense for you to work so hard for so many years for a company or for so many companies, only for you to retire and have nothing to show for it. With this in mind therefore you will need to consider some of the alternatives available, and the tips contained herein on how to actively manage your savings plan for your life in retirement.

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The Traditional 401k Plan and Roth 401k Retirement Plan are two kinds of 401k plans. The Traditional 401k plan allows investors to invest dollar amounts without tax consequences up until the funds are due for withdrawal. If you are saving up, you should know that at 59½ years, there are no penalties. At the age of seventy one and a half, withdrawals become a must and tax is included upon withdrawal.

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In the Roth 401k Retirement Plan, taxes on dollar investments are imposed and taken out before the money is sent to the account. This more or less operates like withholding tax scheme, where the taxes are deducted in advance before you get to have your money. This provides tax advantages to investors and no withdrawal is required so they can retrieve the principal amount penalty free. However, the interest gained by this investment will only be available for withdrawal at the age of fifty nine and a half. When the account is created, it will be easier for the investor to manage the account in numerous ways. This can either be through Bonds, Mutual Funds or even Stocks. Self-employed investors who would like to have the 401k account as retirement savings can consider enlisting with brokerage firms. In this case, the firm can offer the individual various options unlike 401k based firm which tends to lock individuals to one particular stock.

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The significance of actively managing your 401k plan is for you to have a Retirement Plan that is healthy and safe. Regardless of what 401k plan you have chosen, you must start to save for your plan no matter the size, big or small.

The Importance of Actively Managing Your Market Trend Trading System

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There are so many people who ignore the significance of discipline to investment success in managing one’s market trading system. In the world of investment, an investor must possess discipline in order to profit. It is human nature to be affectionate over something wherein money is involved. Three reasons are considered here as to why discipline is vital for market trend investors.

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Before you look at these however you have to try and understand the fact that by the time you are investing, you have chosen to commit your funds in an investment instrument, and for the same reason you need to make sure that you get nothing but the best from the investment. Prevents Investor s from Lettin g Emotions Make Decisions Emotion tells us that we are human and money is important. One can grasp the idea why people get carried away by results when investments weren’t properly handled. http://wealthtiming.com Click Here to Learn More About the Stock Market Trend Following


Of course there are some factors affecting discipline like rights, fear and greed. It is critical in market trend investing when an investor allows their emotions to take control of their decisions since this aspect needs proper thinking. Self-control over matters not pertaining to the business must be observed. Prevents Investors from Freelancing For an investor, not having a single plan makes him feel anxious considering the stock market’s untold riches. A lot of new investors fail to understand the nature of the stock market by just easily giving in to investments and relying on their instinct and luck in order to make a profit. This is why discipline is important for an investor. If you truly want to make your investments earn you some profit, be disciplined enough to do research before investing in the stock market. Keeps Investors Using a Plan t hat Works

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When you think a strategy doesn’t work the way you want it to, you can simply think of the numerous ways through which you can turn it the way you want it. You need to abide by the plan in market trend investing, not jump from one strategy to another thinking it yields overnight profit. In the event that you decide to follow the process, you can rest assured that you will be destined for success. This is because the same has been justified a success based on cases in the past and you’ll just be surprised at how fast the profits will be knocking on your door. This is a good plan and even more so when investors add some discipline to it.

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In the event that you are willing to conduct yourself with discipline, you can rest assured that there is so much you will come to achieve from your investment procedure. There is no space in the markets for someone who is not disciplined, and you need to be aware of the same fact too. There are of course ups and downs, but having discipline helps investors maintain good returns and protects them from being victimized by the stock market.

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TREND FOLLOWING VOLUME 1

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The Origins and Beginning of Market Trend Timing Strategies Most people don’t know that they have been using the principles of market trend timing for a number of years. Market trend timing doesn’t get a lot of respect as the best way to make profits from stocks. The idea is so direct and if only people knew of this and how this simple strategy is effective, they would have easily been caught under the spell of market trend timing. The following are some fundamentals about the origin of market trend timing strategies.

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To identify the exact time where market trend timing is applied, it will be unbearable for a researcher. As a matter of fact, this would be one of the most daunting tasks you would ever have to do. However there are lots of other alternatives to this. There’s a lack of information on financial market practices and it is for this reason why identifying the exact date, month or year is difficult. Nevertheless there is so much concrete evidence to the effect that the concept of market trend following has been practiced by successful investors for so many years now.

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To be involved in the market trend to maintain profit has been a principle for numerous successful business enthusiasts and even economists and this is believed to be rather common sense today. Market trends are existent to make sure that investors no longer invest in the market through normal investment schemes. In most cases, investors usually buy and hold stocks for a while as they wait for the prices to shoot up.

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With market trends however, you will be able to determine which the best investment area is for you, and most importantly, how to go about investing in the area you have specified. A basic in market trend strategies is continuing profitable transactions. Most investors remain in their current positions for as long as they want to in consideration of the good returns they receive from the same position. Famous successful investors rely on different approaches in market investment but the bottom line is that they tend to make decisions in accordance to the existing trend in the market in the hope that it will save them from making losses. You need to rest assured however that you can state confidently that the market trend timing strategies and the philosophies behind it have been used by investors for a very long time. Taking into account that no written manifesto was in existence during that time, many investors have had to utilize the concept which has since developed into one of the most popular profit making schemes in the world today. It has been an issue to most investors when it comes to determining when is the right time to leave or stop a transaction, but through market trend timing strategies, investors have an idea on how to gain profitability without suffering losses.

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There may not be an established constitution of any sort that pertains to market trend timing strategies. However, investors believe that for you to be able to make some profits, you will have to stick with the trend.

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The Stock Market Trend and Reasons Why You Need To Learn The stock market trend is the way the prices in the market are behaving. The stocks or shares of a company have prices. When the prices move down, up, or horizontally, it is known as a market trend. The price movement of shares is referred to as stock market trend. Market trends are important when executing your strategy. The strategy includes market trend calculation to determine the future price. Therefore, it becomes possible for traders to make a profit. Stock market trends should be understood for various reasons:

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It is possible to come up with a technical analysis of your stock. An investor who does not use technical indicators is gambling his money. Technical indicators show the trend of the prices of the stock. With indicators, making a profit becomes easy. Indicators substitute any reliance on advice. The investor can profit on the business in the long run and short term.

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Timing is an important aspect in investment. Timing will come about when a person needs to enter the market and exit. Most of the investors are good and have knowledge of what they need to do. Therefore, they enter the market knowing that they need to buy the stock when it is at its lowest and sell it at its highest. However, they may hesitate and this is what causes them a fortune. Therefore, the advice that can be given to such people is to determine the required entry and exit strategy. This is determined if only people have knowledge of the market trends.

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It replaces the experience that a person requires to start trading in shares. Many investors have experience in stock trading such that they have developed an instinct showing them how to trade. They are capable of predicting the stock prices some few paces away and make the right decision. However, even a newbie who has just acquired information on the market trends can beat the experienced expert at the game. This is the beauty of information. With the proper information, informed decisions are easy to make. Stock Market Trends are one of the indicators that are critically important in this market. It is easy to make the best decision in a market leading to higher profits. It is not also about making profit since you can increase your portfolio. Therefore, make yourself aware of the importance of stock trends and you win the war to make money. By learning about some of these trends you will be in a good position to get to know as much as you can about the stock market. The main reason for you being able to do this is so that you can take advantage of these trends and use them to your benefit in order to get the best out of your stock investment. Today there are so many people who have been able to make the best use of their stocks by simply getting to understand the reason behind the movement of the stocks in the directions they do.

TREND FOLLOWING VOLUME 1

Learn About Trading System and the Merits of Trend Timing System

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If you want to invest in the market, then you have a winning strategy. The strategy may have been acquired from experience or through reading books. However, the important thing is having a strategy that shall make you rich. This strategy is what is referred to as a trading system. Many will advise you to have trading system when you start investing. All they simply mean is that you need to make yourself a strategy. The plan is critical when starting an investment. Moreover, having a plan means trend timing, which is also vital to your success because of the following reasons. http://wealthtiming.com Click Here to Learn More About the Stock Market Trend Following


Eases the Pr ocesses That an Investor Has t o Go Through Technical indicators are important in telling people where their investment is going. Technical indicators combined with fundamental calculations are very useful in timing stocks. However, this is not the best way. The best way is to use the market trends. They are far much simpler and easier to understand. Market trends will indicate when the stock is at its lowest for you invest. At the same time, when the price starts increasing, you will notice and you can sell according to your investment strategy. You Have a H ead Start to Achieving Your Dreams It is easy to make profit, just guess on the right time. Many investors have seen their investment go down the grain because they decided to join at the wrong time. They may have thought that the investment was going to rise because it was indicating a steady rise some seconds ago. However, the price decides to fall and you are not able to salvage your money. Lateness, hesitation, being too early, all can be dangerous because they are the causers of losses. In investment it does not mean that you are capable of trading, it means that you have the right timing.

TREND FOLLOWING VOLUME 1

Increases the Chances of Makin g Profits by Reducing Risk

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Trend timing secures your investment. It is more useful than indicators and fundamental calculations. With proper trend timing, you are capable of ensuring that all risks of making losses are discarded. It increases the probability of making huge profits.

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Now you know your best friend, the trading system and trend timing. When you wish to join a stock trading business, know that you will need to acquire the knowledge stated above. The market is an easy place to grow rich however you have to be careful of not having a strategy. These are some of the benefits that arise to you in the event that you have chosen to trade in the stock market on a given strategy. When you come to think of it there are so many people who would love to get to do this, but for one reason or the other they are not able to. Well, getting a good strategy is your first step towards investing in the stock markets and doing so successfully. Everything else will follow suit if you do get to follow your strategies carefully.

TREND FOLLOWING VOLUME 1

Use a Trend Following Investment Strategy

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Learn about trend following investment strategy to know that it means a system of investments. The system follows stock trends shown by the market. Trends have been known to be useful in investment. It is not a just a story, but the truth. They have made portfolios of people grow wider and profits grow in a short time. With trend following, you will have an advantage on all situations. It does not matter if the people who are controlling the market turn to the buyers or the other way giving control to sellers, you shall simply be immunized from this situations when you use stock market trends. With this advice, be careful not to make the following mistakes when following the strategy given.

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Fortune Telling is Far From Tr end Following The future of stock is always uncertain. The calculations done with the trend analysis and technical analysis does not give the actual position of stock in the future. Fortune telling will give exact positions without fail. However, trend following has some sense of probability. The probability is what makes the difference. The trend following will always seek keeping the investor’s position safe. He saves his money through taking advantage of market opportunities and tries to capitalize on them to increase his money. There Are No Schem es Such As Get Rich In this business, you invest your money risking it for a future uncertain profit. However, with get rich scheme a person will only invest a little money to get huge profits. The money invested in markets will determine the level of profits made. With large investments, the profits will also be large. It is Practical to F ollow Tr ends If you need to start something, there are always those who discourage you. It will also happen in this market. They shall always give you advice on how it is impractical to invest and make a profit. They will tell you that the whole process is rigged by the rich. Nevertheless, it is important to be wary of the market. However, just know that greed and lack of a strategy are the causes of failure.

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Therefore, with trend following, you have a partner to take you to where the money is. Your investment has to follow principles and strategies. Therefore, it differentiates it from fortune telling and get rich schemes.

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Whenever you have decided to invest in the stock market, you have to understand that this is serious business. There is no need for you to try and ignore the market signals here and there in the pretext that you know what you are doing. Market trends exist for a reason, and the main reason for this is to make sure that you are well informed about what you are trying to do, and most importantly, about your causes of action in the markets.

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There is no gambling in the stock markets, and in the unlikely event that you decide to trade through this manner, you can rest assured that you are deemed to fail, and fail big time.

Why You Have To Be Persistent If You Are To Become Prosperous

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The value of being persistence within the marketplace is not really one of the things that you can take for granted as long as you are investing in the stock market. As a matter of fact this is indeed one of the most important traits that you have to learn to practice. The reason for this is that without being persistent, you will not be in a good position to make the best of your trading time. One thing that you have to realize is the fact that through trading in the stock markets, you risk so much, and for this reason you have to learn how to be persistent.

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Among the tenets associated with marketplace time one of the most important is the fact that it can be so good for traders in many different timeframes. Irrespective of what happens to you when you trade in the stock markets, you need to realize that fact that backing down and quitting is not the way to go. As a matter of fact, you have to be ready to look at your losses in a different way altogether. Making losses in the stock market is one thing, and being smart enough to face up to them is another. Therefore you have to ensure that you are able to bounce back from making losses.

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There are a number of events that have marred the markets for one reason or the other, and a god number of these have been mentioned in lots of avenues in as far as investing in the stock markets is concerned. The NASDAQ has been witness to lots of these, especially in 1973 and 1974. Same is the case as in 2008 and 1929. There are lots of people who would have been heartbroken by the events unfolding thereof, while there are also those who would take this as a means to move forward and forge through. It all depends on the kind of investor you are. Trading in the stock markets requires lots of guts, and this is one of the most important things that you have to realize before you decide to get into the market. Losses are as real as you can imagine, and there are lots of people who would run so fast at the mere sight of the same. To become a prolific investor in the market you will need to think of the fact that you could make losses at any time, and you need to know how to bounce back from that. You also need to realize that some losses can occur as a result of actions beyond your control, and that should be a gamble you are more than willing to take.

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Well, for most people diversification of portfolios is one of the easiest ways of making sure that they get to spread their losses appropriately. The reason for this is because by so doing, you will be in a good position to actually manage to make profits even when some of your investments are losing out badly.

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