The Trend Is Your Friend In Trading

If you’ve been a day trader for any reasonable period of time,
you will almost certainly have come across that age old adage
that says, “The Trend Is Your Friend”. Well, I have an important
announcement to make about that right here:

It’s absolutely true!

Indeed, I was browsing in Jack Schwager’s excellent Market
Wizards books a while back, and could not help but be struck by
how many of the top traders he had interviewed emphasized the
critical importance of always trading with the main market trend.
It was something that all the truly great traders he interviewed
had completely in common, so much so that it is almost a law of
online day trading.

Often, the simplest things can actually turn out to be the most
profound and yet be completely overlooked precisely because it is
simple. So definitely, you must whenever possible trade with the
major trend and create trading systems and tactics to aid you in
doing so.

Now, trading with the trend does NOT have to mean that you must
enter near the beginning of the main trend and exit near the very
end of it. Actually, if you only capture half of the total move
or less, you can still do very well. Indeed, there are a variety
of ways to interpret what trading with the trend actually means
to begin with.

As a simple example, if you are a day trader, the trend for you
might just be the intraday move only….

To read the rest of this online day trading article and hear the
podcast, click the link.

Asoka Selvarajah