Sunday, September 20, 2009

To follow the trend or not?

You can follow the trend or be a contrarian and go against the trend.

A market can either go up (the price of stocks increase) or go down (prices of stocks decrease). The best way to make a profit is to follow the trend and on the long run you will make money when you use proper money management methods.

You have more than 50% chance that you are right when you follow the trend, the trend is your friend so stick with it.

Please look at the picture at the right and tell me what the trend is? It goes a bit up and down and so on, but clearly the trend is up.

When you want to see the trend visually, you can take a look at MarketClub, I've put a banner under this article, so if you want to check it out, they have a 30 day risk free trial.


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