Five Points Why Trend Trading Defeats Buy-and-Hold Investment
by Koly Brient
Presently there are a lot of popular perspectives taken as far as investing strategies are involved. Most people recognize with the traditional procedure of buying a stock and letting it grow before selling it a few years down the road. But before you begin entrusting by doing this, there is a strategy that is growing immovably in popularity. This is the business of trading dependent on trends also known as style trading. Here are 5 reasons why trend trading is better than buy-and-hold investments.
Easier to Know and Apply the Principle
An investor who is operating from the standpoint of trends has a lot to learn in the sense of trade analysis and the like. There needs to be an understanding of the market in general and its trends along with those of technical indicators. However the difference between a trend investor and a buy-and-hold is that the things that are learned here can be applied to stocks in general. Even without prior knowledge on the stock in question.
Future for More Incomes
How a buy-and-hold profit works is that a real estate investor purchases a stock that is at the moment at a lesser price. If the investor has bought a good stock, the price of the stock raises and the real estate investor earns a profit because of the difference between the stock's current price and the price it was bought at. This is all well and good, but most folks observe that stocks move up and down even if the whole trend is for one or the other. Trend investors capitalize on this by buying and selling according to the ups and downs. Thus they are able to monetize the ups and downs and also the overall value of the stock.
Flexible
The buy and hold philosophy can be used for any length of time in theory, but it is generally better suited to investors who are investing long or intermediate term. With trend trading, it is possible to profit whether you are trading for the day or the week or even the year. It can be applied to a wide variety of situations and if a trader wants to rest from the market, it is possible to do so with your profits already guaranteed.
Really Little Guesswork
The business of trend dealing revolves around watching objective mechanical indicators and using that information in making decisions. Unlike the buy and hold philosophy this could be accomplished with very little research on particular stocks. By observing the overall trend, a trend trader is capable to make judgements concerning their stocks and it is very difficult to enter transactions on a gamble in this manner.
Trend Trading is About the Investor
Trend trading builds upon more on the real estate investor and the amount of skill that individual has. When trading on a buy-and-hold practically the only way to benefit is by hoping the stock will go up. With a trend trader it is not a great deal about the stock rising. It has to do with how well the investor can see whether a trend is changing. Once the stock indicates that the trend is changing, stock market trend investor will leave the dealing and find another.
The buy-and-hold method of investments has played a very important role in the development of the stock market we see today. Having several stocks that are prospering and holding fast to them could easily end financial concerns. However globally as it is now, such an investment plan is becoming more and more impractical. You have read 5 reasons trend trading is better than buy-and-hold investing. Before getting involved in the stock exchange give serious idea to trend trading.
Learn more about <a href='http://www.youtube.com/watch?v=sqlXEBe2atY&feature=youtu.be'>5 Reasons Why Trend Trading Is Better Than Buy-and-Hold Investing</a>. Stop by Koly Brient's site where you can find out all about <a href='http://www.markettrendinvestor.com'>Stock Trend</a> and what it can do for you.
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New Unique Article!
Title: Five Points Why Trend Trading Defeats Buy-and-Hold Investment
Author: Koly Brient
Email: jacob@bestreliablereviews.com
Keywords: Trading System,Market Trends,Trading Strategies,Market Timing,Trend Following,Market Trend Signal,Trend Trading,Stock Timing,Market Timing System,Trend Following System
Word Count: 615
Category: Marketing
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