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Trend Following Stocks -An Investment Strategy to Compound Money Over Time

There are times you want to be in the stock market and then there are times you do not want to be invested. We have simple rules at TrendFollowingmentor.com. There is no magic system or holy grail. There is a well thought out plan that is taught and can be replicated. You want to buy the strongest stocks when the market is healthy and either be out of the market or short when the stock market is not healthy. We use a simple indicator to determine if we should be in the stock market or out. It is simliar in nature to Dick Fabian’s 39 week rule.

This is the trading tip. This is the plan. There will always be losses. Our job is to keep these losses small and manageable. I take a systematic trading approach to trend following. I trade in an automated trading approach. In this video you will see several stocks that hit the parameters to have been purchased. This is soley for education and are hypothetical trades. These stocks were the strongest at the time in January 2012. The filter I use to enter the stock market was a green light. These are based on a $50,000 dollar account in which approx $500 was risked intially on any trade. There were numerous trades that did not work and losses were incurred. However some of the trades that did work made up for the small losses. The idea is to trade with a plan and follow the plan with risk management and money management. Discipline and patience is a required attribute. Watch the video and learn how to trend trade.

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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