Learning To Future Trade With The Trends Part 1
By Ultimate Trading
Following Proven Trends Is A Huge Part Of Learning To Future Trade
Future trade trends are the habits of the market. They are
reoccurring patterns of price movements that successful traders
watch for, and use to
future trade. This is particularly true for short-term traders,
the traders who avoid buy and hold strategies in favour of
frequent trading that takes advantage of shifting market conditions.
These traders know that the best short-term future trade strategy is
to identify market trends and trade accordingly.
But what exactly is a future trade trend? A future trade trend is a
pattern of price movements that are repeated by different financial
vehicles (stocks, bonds, commodities, currencies, etc) in response
to human actions within the future trade market. Trends can
generally be relied on to reasonably predict the price movements of
Trend trading is the best way to find a future trade and make money
in any market. The markets contain hundreds of future trade trends,
and all you have to do is look for them. And as long as people are
in charge of making trading decisions, future trade trends will
continue to occur. This is because people are creatures of habit who
repeat their own patterns of buying and selling.
Because there are so many future trade trends in the market, there
will always be some operating, whether a market is rising or
falling. Its important to be able to recognize these future trade
trends, not only because they are your way to consistent market
profits, but because its dangerous to trade against them. That's
like trying to swim against a strong tide, it's foolish, and it just
It takes time to learn all the different future trade trends, since
there are countless large and small trends in the market, but some
are stronger and more stable than others. Ill introduce you to some
of the future trade trends that are stable in the appropriate market
environments and will give you a good overview of the sorts of
patterns that exist in the market. Ill discuss them briefly here,
and go over them in greater detail, with future trade tips, in the
other articles of this series.
One of the first future trade trends you will encounter is the
earnings trend. The earnings trend is one of the strongest future
trade trends in the market. When a company is expected to have good
earnings, its stock usually begins to rise in price, starting about
two weeks before the earnings announcement is scheduled to take
Another strong and lasting future trade trend is for the stock of a
company that's announced a stock split to run up into the split's
ex-date. The ex-date is the day a stock's share price changes to
reflect a stock split and revised numbers of shares are credited to
Sharp rises in stock prices are also often triggered by good news,
either about the company itself or about another company in its
sector if the sector is a hot one. And when a future trade in a hot
sector has good news and begins to move up, the stocks of the other
companies in the same sector will often start to run up as well - in
sympathy with the original mover.
Another trend to watch for is for IPO spinoffs. A company that's
going to spin off a part of itself as an IPO tends to move steadily
up in price until the IPO date, starting a week or two before that
date. On the day the IPO starts to trade, sometimes literally within
a minute of the time it hits the market, the parent company's stock
typically dips sharply.
Index Additions can also trigger market future trade trends. Mutual
funds that track major stock indexes have to buy any new stock added
to an index in order to keep pace and follow its investment
guidelines. These are just a few of the future trade trends you
should be watching for in the market. In the following articles I
will discuss these, and other market trends you should become
familiar with. When you can identify and trade with the
future trade trends, your trading profits will increase
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