Does Trend Trading Work?

There are a lot of people who do not believe that you can make money in the stock market by trend trading. They think trading with the trend is a scam that “Guru’s” say to get you to buy their product.

While there can be a lot of scams out there trading with the trend can actually be very profitable. Jessie Livermore the greatest trader who ever lived was able to make over $100 million dollars by trading the trends in the market as opposed to buying and holding a group of stocks.

There are also a lot of money management companies that have done pretty well with a trend trading approach to the market. In fact there was a book called “Trend
Following” that recently came out and talks about how trend traders have been making great returns even in the mist of all this bad news that has been coming out.

That is because when you trade with the trend it doesn’t matter whether that trend is going up or down, there are still tons of opportunities to make money.

In fact as I learn and grow I am becoming more and more a trend follower because it lets you to both, cut your losses short when you are wrong, (if the stock doesn’t go up don’t keep it) and it lets you let your profits run. As long as a stock is heading up there is nothing to make a trend trader worry.

This strategy of buying high and selling higher may not be for everybody, but it does work, and it is a great way to make money in the stock market.

For more on trend following visit http://www.stocks-simplified.com/Trend_Following.html

To watch some short stock market video’s visit http://www.stocks-simplified.com/Stock_Market_Videos.html