Trend Trading Report Part I - Introduction

My passion is to teach beginner and intermediate- level long-term investors and short-term traders how to make money trading stock online and trading forex online. A great deal of the content in this Report is applicable to both trading stocks and trading forex. However, in this Report, the content and the examples will be directly associated with trading stocks.

Trend trading is my favorite way to trade because I find it to be one of the most profitable strategies for the conservative trader. Trends can be viewed from a short term, intermediate term, and long term perspective. Therefore, trend trading can be used by short-term-traders, intermediate-term-traders, and long-term-investors.

What is Trend Trading?

Investopedia defines trend trading as "A trading strategy that attempts to capture gains through the analysis of an asset's momentum in a particular direction. The trend trader enters into a long position when a stock is trending upward (successively higher highs). Conversely, a short position is taken when the stock is in a down trend (successively lower highs).

Investopedia goes on to explain "this strategy assumes that the present direction of the [asset's price] will continue into the future. It can be used by short-, intermediate- or long-term traders. Regardless of their chosen time frame, traders will remain in their position until they believe the trend has reversed - but reversal may occur at different times for each time frame."

Consider the above definition in simpler terms.

• Trend traders look for a trend to appear where the price is at one level and it is expected to continue upward to a higher level.
• Conversely trend traders can look for a trend to appear where the price is at one level and it is expected to continue downward to a lower level.
• That is to say, there are ways to make money when price is trending upward or downward.

To make this report easy to understand I will only refer to trends that are moving upward. That is referred to as "going long" or "trading the long side of the market".

• The important point is to remember that profitable trades must include a trend or it will be impossible to buy at one level and sell at a higher level (aka buy low sell high).
• Once the trend shows that it is coming to an end, the trend trader will exit the market in order to secure a profit.

Trend Traders Make Lots of Money

Please pay attention because this is important. Trend Traders can make a lot of money. However, but that's not always true. Consider the following comments:

1. Some Traders believe that if they can produce a profit on more than half of their trades, then they'll be profitable overall. That's not always true. For example, if you lose more in your losing trades than you win in your winning trades, overall you could  lose money.
2. It's critically important that you invest your money in trades that you have strong reason to believe will turn out to be profitable. Wishful thinking doesn't count.
3. You don't have to be the best trader, just a good one that wins more than they lose. For example if you have 10 winning trades with an average profit of $250 and you have 10 losing trades with an average loss of $150, you'll end up with a net profit of $1,000. That's the sign of a good trader.
4. Even the best of professional traders do not make money on 100% of their trades. A winning percentage of 70% is exceptional.

Success As A Trend Trader Requires Education, Dedication, and Experience

Trend Trading is not gambling. Traders must develop an understanding of what they're doing, how to do it, and why they're doing it. If a new trader jumps right in and invests some money without getting any training, that's gambling. In contrast, spending time gaining knowledge, developing some experience, and remaining dedicated to your success as a Trader will lead to success.

I commend you for reading this Report. This is the start you need in educating yourself as a Trader.

Where To From Here?

To make this report most effective for all short-term traders, My intent is to focus on the following subject matter, although there may be some additional content that will creep in as I put this report together.

Part II -            Market Conditions

Part III -           Recognizing The Trend

Part IV -          Simple Candlestick Patterns

Part V -           Complex Candlestick Patterns

Part VI -          Introduction To Chart Patterns

Part VII -         Support, Resistance, & Trendlines

Part VIII-         Trend Following Patterns

Part IX -          Trend Reversal Patterns

Part X -           Developing Your Own Trend Trading System

Part XI -          Developing Your Own Trading Plan

Part XII -         Developing Your Own Trading Strategy

End of Part I

Part II of this report will be released in about one week. The topic is "Market Conditions And The Role They Play In Trend Trading".

Each week, I'll send via email a copy of that week's posting of the Report to each person that has correctly filled out the Contact Me Form at the top of the right sidebar. You only need to complete the form once. But it is important that you include your first name, last name, email address, and that you request a copy of the Trend Trading Report in the message field of the Contact Me Form. After that you will continue to receive via email the weekly posting of the Report. You will also receive a pdf copy of the complete 12-part report when it is finished.

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