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The Bible of Trend Following

Stock Market Triple Digit Moves to the Upside as well as the Downside $SPY $QQQ

Big Swings up and Big Swings down in the Stock Market. This volatility is very difficult for all types of traders. More so 8 Distribution days puts a very big damper on upside progress in the Stock Market.

Personally I am trading very cautiously….

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With High Distribution Day Counts Might Be Prudent Not to Be in the Stock Market

Currently we have 7 Distribution days on both the SPY and the QQQ. This shows strong institutional selling. It is like fighting an upstream battle in the stock market. One can look at the shares in which they bought and see how they are working. I try to pick the strongest stocks both fundamentally and technically. However these strong stocks such as FB, TWTR,QRVO, ORLY are not especially working.

It might be prudent to sit on the sidelines of the stock market…however you make your own decisions…

Trend following is comprised of both rules and art.

Make your masterpiece with trend following!

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The Battle for the 50 Day Moving Averages on the Stock Market

There is a battle in the stock market over the 50 day moving average. Stock Market Bulls and Bears are battling to see which direction the stock market will trend. Please consider we have currently 7 Distribution days on both SPY and QQQ. This shows a great deal of institutional selling.

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Why Did the Stock Market Sell off So Hard? $QQQ

Does the stock market really need a reason. Just look at Sonic. They reported good earnings and the stock tanked. One key has been the preponderance of Distribution days. They have been in the 6 range in both the SPY and QQQ. Caution should be exercised at this juncture and trades should have exact pre thought rules. Do not get caught up in the emotions of trading.

This is what I teach at Trendfollowingmentor.com
Build a trading plan and learn how to follow it…

Watch this video to learn more…

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Twitter Breakout Trade Trend Following Study $TWTR $QQQ

Yesterday Twitter broke out of cup and handle. It is a good example even if it does not work of combining a fundamental approach and a technical approach.

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Leading Stocks However the Strength of the Stock Market is Questionable

Educational only!
You are responsible for your own investment decisions.

The Market is not overly strong. Actually there are 5 distribution days on both the QQQ and SPY. The question is will the market over come this weakness….Take this into account the age of the stock market 6 years +. This is not overly favorable. The biggest money to be made is coming out of bear market not an aged Bull Market…

However will all the said, no one knows the future. It is quite possible the market can continue to rally. Personally I am invested but to a small degree. It is paramount to maintain capital preservation.

I do not look to see how much I can make…rather…I look to attempt to compound prudently…

The below stocks are not a buy list. Actually an educational list to learn from these stocks…

Buy the strongest stocks in the strongest sectors when the market is healthy..

stocks

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts, commodity options or forex can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

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US Dollar Became Swiss Cheese Trend Following

The reality is trend following is never easy. For US Dollar Bulls the reality became very clear yesterday. The US Dollar became Swiss Cheese yesterday. The US Dollar fell 5% as in a flash crash. Virtually every trend follower was long US Dollar and short virtually every other currency. This is the reality of trend following and trading. It was very similar to what happened with the Swiss Franc a couple of months ago.

The veracity of the move caught so many off guard. So how does one prevent this carnage?

The truth is you can not. All you can do is have a complete trading plan. Know what to trade…both from the long side and short side..Know where the trade does not work and exit…and know where to take profits…

If one wants to succeed in trend following the only way is to have a full trading plan!

usd

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts, commodity options or forex can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
This website contains references to hypothetical trading results This website contains references to hypothetical trading results.
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS
** THE MATERIAL DISPLAYED ON THIS WEBSITE IS INTENDED FOR EDUCATIONAL PURPOSES ONLY

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What is Successful Stock Trading- Combining Fundamental & Technical $MDVN $QQQ

In one’s quest for successful stock trading a combination of fundamental and technical analysis is needed. One first most know where they stand in the stock market. Then they want to find successful profitable companies….and then probably most importantly know exactly when to buy them….

mdvn

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Interest Rate Hike A Margin Call on Assets

Interesting video regarding the potential upcoming interest rate hikes from Saxo Bank.

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How Low Can Oil Go? Contrarian Indicator?

I have been flooded with questions regarding how low can oil go. Should I buy USO?. Firstly I tell those who ask….
1. Have a plan
2. Do not ask anyone
3. Be your own Guru
4. I am not a Registered investment advisor…

However many times magazine covers can be considered a contrarian indicator. Look at the cover of Time Magazine a while back and maybe this will be another indicator..

cheap gas

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