The Five Golden Rules
1. Invest or Trade in the direction of the Trend!
The fastest and most risk free way to make money in the markets is to identify a change of trend in the market as early as possible, take your position, ride the trend and close your position shortly after the trend reverses.
Any market professional will tell you that it is impossible to buy at the lows and sell at the highs (or sell at the highs and buy at the lows) consistently, but with the Trend Trading Picks Newsletter, it is very possible to catch 60 to 80% of many intermediate term and long term market movements.
2. Cut Losses Quickly
In order to keep trading, you must preserve your capital. It is therefore important to keep the individual losses small in relation to the overall size of your trading capital. If you can keep trading in the direction of the trend, the big profits will come. If you are risking too high a percentage of your trading capital on each trade, you could end up blowing your entire trading capital.
The Trend Trading incorporates Money Management Principle and Stoploss Levels will ensure that you will never loose more than 0.5% of your trading capital in any single trade. This means that even if you have a string of five continuous losing trades, you will still have 97.5% of your trading capital to continue trading.
Alternatively the Trend Picks trailing stop loss mechanism helps you to capture 70% to 90% of most trended moves. Our "Trailing Stop Loss" tracks the trend direction, liquidity, volatility and momentum and automagically adjusts itself to stay with profitable trades as long as possible to make your profits even larger.
3. Let Profits Run
Only the Trend Trading stays with profitable trades as long as possible because the trend is likely to continue and make your profits even larger.
The Trend Trading lets profits run while still guarding against the possibility that prices will turn around and take away much of your accumulated profits before the trend actually reverses.
The Trend Trading includes what is called a trailing stop. This is a method of moving an exit point along some distance behind your trade.
The "Stop Loss" mentioned in "Trend Trading" will let profits run while still guarding against the possibility that prices will turn around and take away much of your accumulated profits before the trend actually reverses. It is called a "trailing stop loss". This "Stop Loss" level is always some distance behind your trade. As long as the trend keeps moving in your favour, you stay in the trade. If the market reverses direction by the amount of the "Stop Loss', you exit the trade at that point.
Thus the "Trend Trading" "Stop Loss" will always protect your profits by insuring that you keep 80% to 90% of the accumulated profit on any good trade.
4. Diversify
The Trend Trading includes diversification for spreading risk and or increasing the odds of good fortune.
The Trend Trading insists that one diversify their portfolio over 10 to 20 different securities across different industry sectors having a low correlation with one another.
Spreading your risk between 10 to 20 different securities across different sectors reduces your odds of losing your entire capital on a single stock or industry sector.
Diversifying across different sectors is important because when the economy is digging itself out of recession, certain sectors whose profits are particularly enhanced by falling interest rates put in their best price performance. Then as the economy moves into the terminal recovery phase, the outperforming issues start to decline, but the market averages are buoyed by previous underperforming issues, which thrive in this kind of environment.
5. Manage Risk
The Trend Trading Risk Management Strategy covers the most important element of managing risk by keeping your losses per trade as small 0.5% of your trading capital.
Our Risk management Strategy ensures that you as a trader can continue to trade in the markets even after a string of losing trades. In fact if you follow our "risk management strategy" along with the Trend Trading Picks Newsletter you can continue trading or investing in the markets for as long as you live. You will never ever have to worry about losing your entire trading capital.
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