So you are starting out in trading and you have developed your stock trading strategy . You have gone through technical analysis training and and for your preferred style you have gone with trend traing after some time in thought.

Trend trading is an attractive strategy for sure . Look at a stock chart retrospectively and the trending patterns jump out at you . You get excited about catching a trend in the beginning and riding it through to its final conclusion many months down the road . The money beckons and sucess is before you !

Unforunately, in reality, trading isn’t that easy. You enter a trend – you get in near the beginning or a bit late, but you do make it on board . Now that you are in the trade you move into a small profit as your predictions start to come true . Then a strong day comes along and after that then the market stops dead in its tracks as the stock hits resistance . You tell yourself there will be more and you couldn’t move everything in a day anyway and so you add to your position . But alas the following day the market opens up , goes absolutely nowhere, and then it starts heading down fast. Since you’ve added to the position you were in you head back to break even fast and then you take a loss by the time you get your orders in place . What happened ? How could you have know beforehand that the trend wouldn’t go on and that you should have taken the profit when the market started strong and then paused ?

The following are a few tips for trading that will let you know when a trend is going to go on and when it’s going to stop . If you apply these to your technical analysis training you will be well ahead of the game .

First of all : go with higher time period charge when setting targets; look for logical areas of resistance and support to figure out where the market is going to stop or start moving .

If you do not know how to predict where future areas of support and resistance exist , or within your trading are unsure of how to coordinate your time frames , then take a quality technical analysis training course for some help . Drummond Geometry is one of the best but a variety of valid schools of thought exist .

Another element that is needed is a tool that will help you judget robustness and trend strenght. Resistance or support will be broken through by a strong trend and when a point or resistance or support is hit by a weak trend it will go into congestion or stop or it will reverse and move in the opposite direction . If you have the right tool in your analysis tool kit you’ll be able to figure out which action is more probable ; if you do not have the tools then you have to wait and see , and the possibility of being disappointed is high .

To appropriately measure, momentum tools should be used and apply them to a timeframe that is smaller than the one you are trading … basically if the daily chart is what you’re trading , with your trades try to pick the day’s high or low, then you would be looking at an hourly or half-hour chart to give you support in your trading decisions intraday .

We’ll talk about this more in part 2 of the technical analysis training series.

Whenever a trader goes on a technical analysis training voyage , they usually believe that the challenge will be to learn a lot of technical tools . And they usually seek out they think is an expert.

Actually, the main idea is to come up with your own way of viewing markets , to become comfortable with your vision, and with the patterns which you see , and to be able to identify and become at ease with them so again and again they can be repeated.

The big part of this type of training is really personal self-study and building personal awareness .

Of course, whether you learn a lot of someone else’s vision or if you decide to have your own vision you create, you can become at ease with them and exclude other visions , your understanding can be followed wherever it goes, without allowing other inputs and voices to get in the way .

If you’re going to become a great trader you’ll need to be able to keep outside influences from influencing you. Remember that the world is reacting to energy terminations , and that the crowd of people will be at extremes when you are preparing to take action in the opposite direction . Your mental state of mind must be that you’ll do things that others won’t , because they are afraid to act against the crowd , or they can’t see another option for action because they are asleep and unaware of the reality of the market action that is unfolding . Monitoring, awareness, and observing is needed for this state of mind, and it’s a talent that can be learned .

Let us talk about the nature of probability , and its relationship to technical analysis training, the need for research and how to go about doing it , and the value it has for us as traders in terms of our financial outcomes .

The tools of technical analysis can be so accurate that they may seem infallible . Beginners in trading sometimes think that all supports are going to hold , and that it’s time to jump in with each trend termination . Of course life is not that simple . If the market could be completely and accurately predicted in advance there wouldn’t be any market, and computers could figure it all out . There would be not opinion differences between sellers and buyers, no one would lose or win and the same amount of money would be had by all. The market is infinitely complex and has the ability to do anything .

Most people only rarely have sufficient awareness to note this simplicity , because usually our perception is clouded by different influences and preconceptions. But patterns do exist , and some of these patterns have a high potential for repeating themselves , because energy often does and can repeat . The trick is learning how to tell when a pattern is holding , and how to see if it’s not going to hold up. And furthermore , to figure out when patterns will break or hold when you look at a large sample. These tools can be effective and accurate — but on a percentage basis . The odds are on our side , but you don’t have a guarantee that you’ll succeed.

The main point to technical analysis training is to ensure your research is done very carefully so when considering things in a large sample size, you know how the patterns are going to act .