Stock market trend analysis

Free stock trading advice

about stock market trends

Also, I’ve met a lot of people during my trading career who trade without any idea of trending. I noticed that these people totally concentrate on their own ideas about what a stock or the stock market must do. They try to order the market what to do. And the market fails to do it, and over time these traders fail.

I found that the only way to survive on the stock market is to identify the prevailing stock market trend and/or a trend in a specific sector or stock.

My core stock trading strategy and also my ETF trading strategy are based on stock market trend analysis.

I do that because a personal trading account or personal accounts of every retail trader are too small to have ability to move a market, sector or stock. These moves are arranged by inflow or outflow of huge amounts of capital provided by large institutional investors like investment banks, asset managers, hedge funds, mutual funds, insurers and so on.

So, to trade against the trend is like swimming against a very strong stream in the river. It’s much easier to jump into the boat and let the stream move the boat without using your own energy.

It’s not very complicated to find what’s currently the prevailing trend on the stock market. Technical analysis has several instruments that are very helpful in this matter.

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