Traders follow distinct methods to trade in stock
and commodity market. Traders use
technical analysis for effective trading. Some also use statistical and
fundamental methods. Beginners extensively use trend based trading. A strong
trend is followed in this approach. Trend can be up trend, down trend, and flat
trend. Traders and advisors suggest to take buy position in uptrend while, in
case of down trend the direction is downwards and is presumed to continue in
the original direction. In case of downward trend sell call is initiated. The
buy low and sell high concept is followed in trend based technique. In trend-based
technique, many factors are responsible for the continuation of trend. News
among the people trading and some sentiments are responsible for trends. Thus,
trends are trustworthy and reliable. Trend based trading can be pursued for a
longer time. Traders are instructed to always trade with the trend, never
practice against the trend. Trend is trader friendly.
Notion of trailing stop loss is vital in trend based
trading. Traders minimize risks in order to gain profit by using trailing stop
loss. The levels of the stop loss are moved higher with an uptrend after the
execution of the buy trade in case of stop loss trailing. In case of a sell
trade the stop loss levels are moved down with the prices in the downtrend. To
get Maximum out of trend, trailing stop loss is an efficient and effective
method.
One can get in touch with Money Classic Research for more information on trend based trading
and other trading styles. We offer complete support on trading strategies as
well as Intraday and delivery based stock market tips. The support of the advisory firms can be taken for
accurate equity tips and intraday trading tips. Money Classic
Research is SEBI registered and ISO certified.
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