Real-Time Trading Signals
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The Importance of Trends Do you ever say, or hear someone say, "that price is too low"? Or worse yet, saying that while holding on to a losing position. Of course you have. That's a natural tendency, to sell a winning position, and hold on to a losing position. Because the pain of taking a loss is too great. Markets are made to surprise you, to move prices beyond what you consider reasonable, for the sole purpose of taking your money. In a down trend, the price will be "too low" for longer than you can psychologically withstand. Think about it. For every position you take, some market insider has sold you that position. Since insiders have more power (and money) than you, they'll move the price down as long as your holding it. Yes, markets are smart, so smart it consistently takes money away from emotional traders. Tracking Current Trends Never hold a position that is against the trend, based on the table below. This simple rule will save you pain, worry, and money. Note that the exit rule applies even with entry signals provided by TradeScalper.com scanner. What happens occasionally is that TradeScalper will produce a signal based on a retrace; but when the retrace continues strong, it becomes a trend reversal.
The trend is your friend, til then end, when it bends TradeScalper is strictly a trend following system. Our trend tracker is the foundation of our system. We systematically detect new trends early using a dynamic threshold, long before it's close to the end. Yet we do not label every retracement of a primary trend as reversal, to avoid getting fooled by choppiness. We've achieved the right balance, so that regardless of conditions, such as wedges or expanding triangles, we'll keep you on the right side of the trend. For instance, take a look at index futures. On trending days, the primary trend are usually done around noon, after 11am. Even if you have a winning position, expecting a strong move beyond this "end" near noon-time is greedy, and will probably result in giving back your profits. Copyright 2009- by Trading Support Technologies Inc. All rights reserved.
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