A SIMPLE DEFINITION of trend trading is to trade with the trends. But, a beginner will need to know what trends are and how they are followed. Whenever we are trading (buying/selling) any type of security, we take advantage of technical analysis, which is a study of how the value of securities change over time. When we talk about a bull market, the trends are up, like the horns of a bull. When we talk about a bear market, the trends are down, like the paws of a bear. During any trading day, there are often many peaks and valleys. Trend analysis looks at the bottom of the valleys over a specific period of time. Analysts plot the low values over that period of time on a graph. Or, they may use available software to plot them. If the lowest values continue to increase, over time, then there is an upward trend. Analyzing or identifying trends can be used to decide when to enter a market or when to leave it. Trend analysis is used by short and long-term traders, but long-term traders rely on the trends, more than any other analytical tool. Historically, stock market investments have been safe, when held for 20 or 30 years. During the last three years, we have experienced a bear market. The trend is down. Even though some investors lost money in recent years, they may have still had a net gain, depending on when they entered the market. Some investors were able to identify the new trend, the change from bull to bear, and exit the market with maximum profits. When upward trends are experienced consistently for weeks, months or years, then the valleys seem to flatten out, many investors choose to sell at that time. They believe that the flat-line is a pre-cursor to a downward trend. Sometimes, they're right, but not always. Trend trading over short periods of time is akin to gambling. Sometimes, you win. Sometimes, you lose. Advanced software has made it easier for investors to use trends and other analytical tools themselves. In years past, we had to rely on market analysts or investment advisors, who spent practically every hour of every day watching the market. The definition of trend trading is simple. Learning how to spot the trends and take advantage of them can be difficult. But, at least it's getting easier. ...Learn How To Turbo-Charge Your Stocks Trading Results and Make More Money! CLICK HERE!
To Your Online Trading Success, Dan A.

DO YOU Know About Swing Trading
? Swing trading is about a trader taking advantage of the swings in price or oscillations of price as it moves up and down over time. Swing trading is a style of trading that can be used on any market. The main three styles of trading are day trading, swing trading and trend or buy and hold trading. Swing trading is found in between day trading and buy and hold trading and is highly recommended, regardless of the market. Let's take a look at the other styles. If you open and close all of your trades within a single day, you are known as a day trader. Even opening and closing trades for several seconds to minutes, commonly known as scalping, is considered day trading. Some traders prefer scalping because of the high profit potential, although this comes with high risk. The other end of the trading spectrum is where you find buy and hold traders, holding their trades sometimes for many months. Without large trading capital, you will find that the buy and hold trading style can be difficult to profit from. Swing trading is medium term focused and usually has traders holding trades for several days, but less than a week. Is it common for some traders to go longer? Of course, but this is just a general rule of thumb. Some markets are more suitable for swing trading and it is important that you are trading the right currency pair or stock. High rates of return with low risk is what make many traders swing trade. This is the perfect balance for trading profitably. Scalping, while sometimes profitable, usually results in many traders melting down and blowing up their trading capital. Only swing trading offers high rewards with low risk. Swing trading offers low risk but the potential to make substantial profits in both forex and stock markets. ...A Revolutionary Trading Software Guaranteed To Generate Profitable Winning Trades On Autopilot In Only An Hour A Day Using State-Of-The-Art Artificial Intelligence Robot! GO HERE!
To Your Online Trading Success, Dan A.

WHAT ARE COMMODITIES? Commodities are raw materials that are sold in bulk, such as oil, wheat, silver, gold, pork bellies, oranges, and cocoa. Onions are specifically excluded from the commodity list, thanks to a 1958 law. Financial commodities include currencies, Treasury securities, and stock indexes. Larger manufacturers buy the commodities they need on the "spot market," where the full cash price is usually paid on the spot. They also hedge future needs by investigating in contracts to buy those commodities in specific amounts at specific times. Speculators typically buy and sell commodities with options and futures contracts. You can track commodity prices in The Wall Street Journal or The New York Times or at a Web site such as Barchart.com, which displays commodity prices on a time-delayed basis. How Can I Invest in Commodities? Not everyone can invest in commodities. Before a brokerage will let you invest in commodities, you’ll have to meet certain net worth requirements and put cash in a brokerage margin account. The good news is that $2,000 of your cash could control more than $20,000 USD in gold or soybeans. The bad news is that if prices move against you, you’ll have to come up with more cash -- or lose your investment. Commodity Prices often swing wildly. So, you can make lots of money or lose your shirt in hours, if not minutes. Never invest money that you can’t afford to lose in commodities. Is The Commodities Market Safe? Commodities trading is one of the riskiest investment activities around, short of buying lottery tickets. Don’t invest in commodity markets unless you have a diversified investment portfolio and you won’t be hurt by large losses that can happen in almost no time. You would do well to consider trading in commodities as more speculation than investing. Is There a Safe Way to Invest in Commodities? You can Buy Commodities -- large quantities of raw materials such as gold, wheat, pork bellies, and cocoa -- with futures contracts. However, investing in commodities is so risky that the Commodity Futures Trading Commission (CFTC) cautions that these investments are not for everyone. The CFTC describes commodities trading as a "volatile, complex, and risky business." Ask anyone who has traded gold, Treasury bonds or crude oil. A somewhat safer way to Buy Commodities is to invest in a mutual fund that buys and sells commodity futures. These funds include the Pimco Commodity Real Return Strategy D (Ticker: PCRDX) or the Oppenheimer Real Asset fund (Ticker: QRAAX). At least, an investment in a fund like these limits your loss to the amount you have invested. What is Margin Buying of Commodities? When you buy commodities on margin, you use a small amount of cash to control a large quantity of raw material, such as wheat, gold or Treasury bonds. You must post an initial margin, depending on the contract, and keep a maintenance margin amount in your account. Because so little cash is needed to control large quantities of goods, margin buying uses leverage to boost your return. But beware -- this strategy is risky. You can lose your entire investment -- or more. Can I Invest in Precious Metals Without Having to Buy Futures or The Metals Themselves? Yes. In fact, streetTRACKS Gold Shares (GLD), an exchange-traded fund that’s tied to the price of gold, was the most successful fund launch of 2004. It’s now one of the most actively-traded ETFs, although the price fell back from a March 2008 peak of $100.44 along with the market crash. The iShares COMEX Gold Trust (IAU) began trading in January 2005. The iShares Silver Trust (SLV) began trading in April 2006. By the end of 2008, according to Stock-Encyclopedia.com, there were at least 32 ETFS that focus on precious metals. What Government Agency Oversees Commodity Futures and Options Trading? The Commodity Futures Trading Commission (CFTC) regulates the markets where commodity futures and options are traded. Its mission is to protect you as an investor from fraud, manipulation and other abusive practices. The commission investigates and prosecutes alleged violations of the rules, such as improper marketing of commodity investments, and it refers criminal activity to the Justice Department for prosecution. You can read about recent enforcement activity and other news on the CFTC Web site. ...Learn how 'Stock Assault 2.0' Gives You Dead-On Stock Picks to Earn You Thousands of Dollars per Month using an Advanced Artificial Intelligence Engine! CLICK HERE! To Your Online Trading Success, Dan A.