The Best Stock Trade- Trend Following


Junior member
Best Stock Trade- Trend Following
The best stock trade are those in which one trend follows. Opinions do not mean anything in the markets and are not the way to make money over time. When one tries to trade with opinions, the stock trader can not be consistent. Being consistent is one of the foundations of being successful over time. The best stock trade does not involve selling tops or buying bottoms. This is not a good stock market strategy. Rather one needs to let the market tell him where it wants to go, thus trend following. However there is much more in trend following. One needs to know what to buy. There are myriads of stocks. What I have done in my proprietary trading is I identify the strongest and weakest stocks. This becomes my universe. These become the potential for the best stock trade. I do not try to buy bottoms or sell tops. This is for non professional and non successful stock traders. I identify the strongest and weakest stocks by using a method of rate of change. The next step becomes money management. Money management is the pillar stone of successful stock trading. In order for me to take a position, the trade must go through a series of money management filters. Most stock trades get rejected for various risk reasons. I look to limit the number of positions and then just sit back and see what happens. I let the plan unfold. I have no idea what trade will work. I even ask myself how much is this going to cost me to see if this trade will work. In most cases it is less than 1% of my account size. The best stock trade involves having a well thought out plan. No emotions, just an algorithmic trading strategy & the proper discipline & patience to let the plan work overtime.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts, commodity options or forex can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
I strive for consistency. Doing the same thing over and over again. Almost boring to many. This is the way for me to compound money.