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How to Trade in Stocks- Trend Following

There is only one way for me as far as how to trade in stocks. This is trend following. You really need to be an optimist when learning how to trade in stocks. No one teaches you the real way or how to trade in stocks in University. Too many have been brain washed into buy hold which is detrimental to their financial future. As well as there is so much snake oil out there. There are trend following mentors that are not even traders.

Investors are overwhelmed with Cramer, CNBC and Bloomberg. Many change their sound trading strategies based on how they feel that day or what they have heard in the news.Fear,greed or ego kicks in and kicks the stock investor in the rear end. The only way how to trade in stocks is to have a well thought out plan.

Even with a well thought out plan one can not avoid ( nor should they try to) losses. The only people who have avoided losses are the like of Madoff and other crooks. A person must be an optimist to be in this business. Every day you risk hard earned money in order to compound it. The goal must be to compound money over long periods of time. The only way to compound money is to have a plan and follow that plan. You must replicate the same technique over and over again. You need to be consistent. You see a situation, you have identified the strongest markets in order to trade, you have seen it before, you take the trade, you have a stop loss placed immediately, you accept the risk, you know where you are getting out with a profit as well as where you are getting out with a loss. The loss does not cause you any emotional discomfort. You know that losses are as natural as breathing. This is how to trade in 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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