Thursday, July 26, 2012

Two big trends

These two US stocks are on the my list of big movers today. It is clear to anyone from a trend following perspective that these have been in a downtrend for a while, and again proves that trying to pick tops (or in these cases bottoms) in a market is a futile exercise.

If taken, these short trades were already in multi-R profits before today, and the temptation would have been to bank the profits a while back. The continuing trends show that you must have patience to ride the trend until the appropriate exit signal is given.

Trends like these show how potentially you can be remunerated handsomely for following a computer-generated signal and pressing a "sell'' button. Simple? Absolutely, but in life very often simplest is best.

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