Trend Following

Trend following also called momentum trading is the simplest and safest way of stock market investing . It puts you in stocks and mutual funds that go up and get out when they start down . Well done , there is no guesswork .

How many times have you bought a stock or fund for in-depth analysis ? You have gone from Morningstar and bought their extensive reports - many months old, but you do not know that . Perhaps your broker sent you a bushel of nice reports about how great this particular company . Unfortunately every time you bought the shares or funds either not gone up or down.

Once you 're touted a number of equity you can be sure you are not the first and you could be the last to be bought at the top of the move. What can you do to prevent this kind of Wall Street fall

Where to a file or a fund that will actually go up after you buy it find ? One thing I will say is do not try to pick individual stocks. Leave that to the pros. The best place for your money is in a no-load mutual fund (which is no commission ) or an ETF , Exchange Traded Fund (a type of mutual fund that trades like a stock ) . A fund has a professional money manager who is able to be. Of buying good stocks He spends his whole life to do, where you have another occupation so.

There are many places on the internet that ranking funds by performance such as Yahoo.com , stockcharts.com , barcharts.com and many others . Performance means that it is more and faster than any other investment . You can also list the funds can be found in Investor's Business Daily or you can subscribe to a service that does all this for you as noload FundX . Forget Morningstar and their star ratings that are meaningless .

To determine whether to buy or sell , you can use a very simple 200 - day moving average and you do not have to do the calculation. Go to http://www.bigcharts.com and click on their interactive charts . In the left column you can find a place to type in 200 and then find that line will appear in the fund symbol entered . When the fund is above the line you want to own it . When it goes below the line you want to sell . Yes , it's that simple .

There is no holy grail trading method , but next trend is about as close as possible to the average person will find . A trend follower understands there will be occasional losses , but he also knows that when a major trend begins he will participate for at least 60 % to 70 % of the profits from the move . He knows when to buy and more importantly when to sell .

Best selling all of Thomas ' book , "If it does not go up , do not buy ! " Has helped thousands of people make money and keep their profits with his simple 2 - step method . Read the first chapter and receive his market letter  and discover why he's the man that Wall Street does not want you to know . Copyright 2005