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View Full Version : Trend Trading Dogma, in a Nutshell.


badcompany
12-18-2013, 07:02 AM
A trend is more likely to continue than not.

Magister Ludi
12-18-2013, 08:12 AM
Producing noise traders helps alpha generation, at least up to Vishny limits.

PICSIX
12-18-2013, 08:26 AM
A trend is more likely to continue than not.

For the average investor this is their best way to approach the markets....forget about the buy low sell high mentality. Instead, buy high and sell higher. :ThmbUp:

badcompany
12-18-2013, 09:12 AM
For the average investor this is their best way to approach the markets....forget about the buy low sell high mentality. Instead, buy high and sell higher. :ThmbUp:

Yes, high and low are relative. A stock can be at its all-time high and still be a bargain.

To define Trend Trading further, it simply means that you use price as the first sieve.

A stock is not a candidate for purchase unless it's currently outperforming the market as a whole. Once this is established, then you can look at its fundamentals.

Here's an example of a stock I current own and bought in Nov, 2013.

Note, that, at the time of purchase, the stock's ratio to market was confirming the trend.

http://i95.photobucket.com/albums/l142/thinlizzy21/40987c0dc090a250b87ceeba4b060a87_zps8c5bd013.jpg

Robert Goren
12-18-2013, 09:40 AM
Dumb luck is better than smart investing.

badcompany
12-18-2013, 11:14 AM
Dumb luck is better than smart investing.

Thank you for this contribution.

Your insights light the way. :)

RaceBookJoe
12-18-2013, 11:55 AM
Thank you for this contribution.

Your insights light the way. :)


haha, absolute brilliance :bang: