Stock market trend

helps in money management

and position sizing

Knowledge of current stock market trend is also important in money management for stock trading.

Trader needs to know when is better to be aggressive and when it is better to be conservative. One of very important knowledges for every trader is also to know when to stay out of market in cash without any opened trade.

Different stock market situations offer different position sizing for trades:

• Aggressive long
  In this stage there is good to use full position size defined by your money management rules for long trades. Preferable strategies are long trades. Short trades only in weakest sectors or stock and preferably in half position size.
  
  
• Conservative long
  This is phase to be preferably in long trade but in half position size only. Short trades are possible to with little more aggressiveness then previous stage - individually choose full or half size
  
  
• Aggressive short
  Trader should prefer short trades with full position size. Long trades should be considered only in strongest sectors or stocks and preferably in half size only.
  
  
• Conservative short
  Trader would prefer short trade strategies. Preferably in half size only or individually decide. Long trades could be traded too but again individually consider position size - full or half.
  
  
• Cash only
  There are situations in market when is better to wait for new trade setup. Do not chase already moving stocks. There is better to wait and be patient.

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