Whats the Trend
Any trader in the world knows this simple saying .THE TREND IS YOUR FRIEND.You could take a trip to wallstreet and anyone you meet on the street you could ask is the trend my friend and the answer you get is 100% YES.This simple answer could be the downfall to any trader.Remember the important question is (What kind of trader are you).
If you had billions to move the market when you sneezed and every single trade you do ranges in 500 million you won't need to know what the trend is.Simple English is that you BECOME a trend setter instead of a trend follower.However once again we are all simple traders trying to make a decent profit from the market so i will assume that not everyone here is a billionaire.There are 3 basic types of traders and before going into each of them i once again urge you to ask what kind of trader are you cause each trader will face different difficulties.
The 3 types are
Traders that follow the trend
Traders that go against the trend
Traders that wait for the trend to change
If you had billions to move the market when you sneezed and every single trade you do ranges in 500 million you won't need to know what the trend is.Simple English is that you BECOME a trend setter instead of a trend follower.However once again we are all simple traders trying to make a decent profit from the market so i will assume that not everyone here is a billionaire.There are 3 basic types of traders and before going into each of them i once again urge you to ask what kind of trader are you cause each trader will face different difficulties.
The 3 types are
Traders that follow the trend
Traders that go against the trend
Traders that wait for the trend to change
Uptrend
Ok here is a very simple uptrend.Its on a 2 hour chart which clearly shows the market moving higher.The simple way of trading this would be to look for good buy points.At this point in time you would normally here or see something like this from any other website.
You would see TONS of website giving you false ideas about ( IF you bought at the blue points and Sold at the red points you would be SWIMMING in profits right now).I agree with that however at the same time lets keep it real and be honest. IF everyone could do that.IF there was a trading system that gave you this kind of results.IF it was really as simple as that.No one would be working cause no one would need to.Lets skip the BS and keep it real.In this situation i would be more then trilled to walk away with a profit of $10 from every Buy that i placed.
The reason why everyone likes to use pics to (show) you what you have missed is cause of a simple reason they cant TELL you whats coming.This is the most recent chart on the DJ30 which i took.When anyone looks back even a 3 year old kid can tell you where to buy or sell cause the charts DONE.In my eyes its over and done with.Explain to me why i should pay hundreds of dollars for a system that's suppose to work wonders.Why don't they make it even better for you by telling you every time you use their system before even paying they tell you whats gonna happen and you don't have to pay a single cent till the bloody thing EARNS money for you ??
I do know that there are other people out there that SWEAR by their auto bots and all that but i like to say in my eyes there is no better bot then my brain.Please excuse my ramblings as im not pleased when people try to showcase something (so easy a 3 year old could do) and neglect to tell you about the dangers of losing your hard earn cash including the amount of money you paid for that (super system) which was suppose to earn you money while you sleep.
Ok back to topic as we can clearly see this is an uptrend cause the markets putting in higher highs and higher lows.For a down trend it would be the opposite of lower highs and lower lows. Take note that a trend is also defined over a period of time meaning that for a 2 hour time frame you might see this as an UP trend but if you switch over to a daily chart it might be a downward trend.The standard way to check is to always use a bigger time frame on what you are currently using.Once again its your preference as to what charts you use for me its as follows.
I look at a daily chart to check the trend followed by an hour chart for the current trend then i switch over to a 5 min chart to look for a set up and finally 1 min chart for precise time to go into a trade.Dont worry if what im saying is gibberish to you right now i will slowly explain everything as i go along.
For now just take note on the following
DAY chart to check trend
Hour chart to check current trend
You are more then free to use any time chart but always remember to check against a BIGGER time frame.Although i would love to say buy when people are selling and sell when people are buying its not a really good idea to fight against a truck load of people.So for now i am simply a TREND FOLLOWER.
Dont forget to ask yourself if you want to follow the trend or go against it.
To end of i will say it one more time always remember this saying
THE TREND IS YOUR FRIEND.
The part that pro traders left out is this (UNTIL THE END).So the complete saying will be
THE TREND IS YOUR FRIEND UNTIL THE END
With that being said always use caution when you trade never be complacent and think today is an up trend so i can just buy at any point.The min the trend ends and goes the other way its no longer your friend if you are still holding onto open positions.
The reason why everyone likes to use pics to (show) you what you have missed is cause of a simple reason they cant TELL you whats coming.This is the most recent chart on the DJ30 which i took.When anyone looks back even a 3 year old kid can tell you where to buy or sell cause the charts DONE.In my eyes its over and done with.Explain to me why i should pay hundreds of dollars for a system that's suppose to work wonders.Why don't they make it even better for you by telling you every time you use their system before even paying they tell you whats gonna happen and you don't have to pay a single cent till the bloody thing EARNS money for you ??
I do know that there are other people out there that SWEAR by their auto bots and all that but i like to say in my eyes there is no better bot then my brain.Please excuse my ramblings as im not pleased when people try to showcase something (so easy a 3 year old could do) and neglect to tell you about the dangers of losing your hard earn cash including the amount of money you paid for that (super system) which was suppose to earn you money while you sleep.
Ok back to topic as we can clearly see this is an uptrend cause the markets putting in higher highs and higher lows.For a down trend it would be the opposite of lower highs and lower lows. Take note that a trend is also defined over a period of time meaning that for a 2 hour time frame you might see this as an UP trend but if you switch over to a daily chart it might be a downward trend.The standard way to check is to always use a bigger time frame on what you are currently using.Once again its your preference as to what charts you use for me its as follows.
I look at a daily chart to check the trend followed by an hour chart for the current trend then i switch over to a 5 min chart to look for a set up and finally 1 min chart for precise time to go into a trade.Dont worry if what im saying is gibberish to you right now i will slowly explain everything as i go along.
For now just take note on the following
DAY chart to check trend
Hour chart to check current trend
You are more then free to use any time chart but always remember to check against a BIGGER time frame.Although i would love to say buy when people are selling and sell when people are buying its not a really good idea to fight against a truck load of people.So for now i am simply a TREND FOLLOWER.
Dont forget to ask yourself if you want to follow the trend or go against it.
To end of i will say it one more time always remember this saying
THE TREND IS YOUR FRIEND.
The part that pro traders left out is this (UNTIL THE END).So the complete saying will be
THE TREND IS YOUR FRIEND UNTIL THE END
With that being said always use caution when you trade never be complacent and think today is an up trend so i can just buy at any point.The min the trend ends and goes the other way its no longer your friend if you are still holding onto open positions.
