Buying Stocks Without a Broker

Online Share Trading and Keeping An Eye On The Trends

The trend is your friend. Cliche? Yes, but it is still one of the most important and often the most overlooked aspects of trading shares. Trends affect every trading decision you make or will ever make since it’s an indication of market movement. For many trends are just confusing lines on graphs, but trends can help you identify patterns that can either save you a fortune or make you a fortune.

One of the biggest mistakes that novice traders make is to try and trade against the market. It’s quite understandable though since we all tend to go for the one big hit. Sophisticated traders however pick them off one by one and they trade systematically and they always with the trends and market movement. Trading against the market can burn your fingers and although you can have some big trades with that philosophy it is never a wise way to trade. You will lose more than you win.

For us online traders we do swing trading, we want to ride the wave and trade with the trends. Novice traders look at a stock and think that they want to buy at the absolute minimum and then sell at the absolute maximum. This is a huge mistake. Trading in the extremes is a recipe for disaster. When you are rising the wave and trading with the trends you are flowing with the money.

Market movement is all about momentum. Once a stock builds up momentum its like a ten ton truck that’s built up speed. It’s hard to stop it and even it has to stop it takes time to stop because of the momentum. You want to ride the stick while it has momentum and trends help you identify the momentum.

Stock tends helps us to identify the optimal zones to trade in instead of just trading particular “points” where a stock is high or low. Not only is it a much safer way to trade, but it will help you to consistently make profitable trades. Instead of trying to buy at the peak and sell at the bottom, try and think of it in a different way.

You want to buy stocks in the bottom 20% and then sell it in the top 80%. It gives you the safety net of selling in time to lock in profits while giving you enough time to spot a potential mover. Online share trading is not rocket science and following a scientific and systematical approach can significantly improve your success in the markets. Use the trends. They truly are your friends.