Trend trading could be the easiest and most lucarative trading style. There is just one caveat and that is the entry. If you manage to enter trends safely, you have turned on your private money printing press. The real problem is of course that only a fraction of all spotted trends go ahead after you bought them. Trend trading is no sure fire system.
With the right entry technique everything else of a trend trading system can be suboptimal, except perhaps the money management.
What is the “right” entry system? It is one that produces gains on its own. Look at it like this: If you are able to trade profitably and it turns out after you made the entry that you are on a trend, it is doable to switch the trading strategy to one that holds on to the trend.
There are various ways to trade profitably and many of them can be used for getting on a longer running trend. One very direct method is swing trading. It already has the right time frame with a holding period of days and weeks.
If you are able to swing trade, you are also able to trend trade. We have discussed this already. Let’s instead now have a closer look at the switch from the entry system to the trend holding phase.
The simple method would be to use just a gain limit. If your position is far enough in positive territory, make the switch and become a growth investor for that position. On average a gain you already achieved in that position tells you something, namely, hold on to me.
Here is the more elaborated growth swing trend investing system:
Concentrate on growth stocks and make your selection of trading candidates accordingly.
Just swing trade your growth selection, for instance with this complete swing trade automaton that makes short-term gains on its own.
If some positive news strikes while the autoswing trader is long, switch to a buy and hold strategy. The price before the news hit is your stop loss point.
If negative or no news shows up, or the swing trading system is short, do nothing. Just follow the swing trading signals.
If a long-held growth stock matures after making you a substantial gain, phase it out finally and move on to younger stocks.
A detailed description with variations of this method can be found here in our gallery. Highly recommended for the beach trader.