What type of stocks are good for trend trading in your opinion?
I recently recieved my new passport and will have officially opened up my share dealing account with my bank to trade the stock market with. I have, in the past, looked into geared investments like Options trading, CFDs; (contracts for differences), spread betting, spot-forex trading, but I don't like the idea of using any of them and feel that directly investing into the stock market is much more enjoyable and healthy in the long term. I would like to know what stocks are best, in your opinion, to trend trade, i.e. if a stock is going up and has been for a few months follow the trend up?
Public Comments
- Trend up or Trend down, You need some indicators to detect it to anticipate the trend change. Using Moving Average like for : ( cross over detecting system, but sometimes you have a whipsaw period) short-term period is: 5 day moving average with 20 day moving average medium term average: 20 day moving average with 50 moving average. long-term average : 50-day moving average with 200-day moving average couple website for you to learn: http://www.incrediblecharts.com http://www.stockcharts.com http://www.pring.com http://www.stockTA.com couple book are really good: Stock Trader's Almanac by Jeff Hirsch Technical Analysis for Financial Market by John Murphy All about market timing Using momentum indicators: RSI, MACD moving average, TRIX indicators to detect bullish divergence or bearish divergence..
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