3 Major Trend To Watch

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You always hear big experienced traders to tell you not to go against the trend.� If a stock is trending up you should not short, and if it is trending down you should not be buying.� Going a bit further there are 3 major trends you should consider when buying or shorting a stock.�

��������������� The first major trend to watch is the overall market.� That is because stocks tends to react based on what the market is doing.� During a bears market you may find great bargains but there is not as much buying pressure as there is in a bulls market. �This can hurt the stocks ability to go up, no matter how great of a company they are.

��������������� The same is true in a bulls market.� Shorting does not work as great when the major indexes are in big up trends.

��������������� The second trend to watch is the industry groups.� It is said that as much as 50% of the movement a stock does is based on its industry group.�� With that considered it is no wounded why checking the trend of a stocks industry group is very important.� Think about it is oil is going up most of the companies who drill for oil are going to be going up too.

��������������� The last important trend to be aware of is the individual stock itself.� Ultimately it is the individual company that we trade. ��Because of that being sure that you are trading on the right side of the stock is the most important one of the three.

��������������� It is best to trade when all three of these trends are on your side.� An up trending stock in an up trending industry group in a bulls market is more likely to head up then if just click the next web site the stock was in an uptrend. �

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