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So you have started to trade and you have a strategy for stock trading that is your own. You've taken stock option trading and and for your preferred style you have gone with trend traing after some time in thought.

Trend trading is a strategy that is very attractive. Take a look at charts and you'll see those trending patterns jump right out . You salivate about catching a beginning trend and then riding it out to its conclusion months later . Success is ahead of you and that money calls you!

Trading isn't so easy in reality . You enter a trend – you get in near the beginning or a bit late, but you do get aboard. You are now in the trade and you're able to get a small profit as you see the predictions you made come true. Then you have a strong day and the stock hits resistance and the market stops dead . You just let yourself think there is more ahead and you can't make the entire move in one day anyway and to your position you add. The market opens the following day, spends time going nowhere and then plunges south . Because you have added to your position you are quickly back at break-even and once you have the orders in place, you have already lost money. What occured ? How could you tell ahead of time that the trend was not going to continue and that instead you should take your profit when the market opened strongly up and paused ?

Here are some trading tips that will help you tell when a trend is going to stop or continue on. If you use the tips along with the technical analysis training you will be well ahead of the game .

First of all : to set your targets use higher time period charges ; look for areas where resistance and support are logical to know when the market is going to stop or start.

If you are not sure how you can predict where support and resistance will exist in the future , or are uncertain how to coordinate time-frames in your trading , then consider using stock option trading course for instruction . Drummond Geometry is one of the best but there are many schools of thought which are valid as well .

The second element is that you need is a tool that will help you judget robustness and trend strenght. A strong trend will break through resistance or support and a weak trend will stop and either go into sideways congestion at a point of resistance or support or it could reverse course . If in the analysis tool kit you have the perfect tool you can predict the more probable action; you'll have to wait and see without the right tools , and the possibility of being disappointed is high .

To appropriately measure, momentum tools should be used and then apply them to a smaller timeframe then the one you are in … to make it plainif you are trading a daily chart , trying to pick out the high or low of the day with your trades , then to support the decisions you make intraday, you look at the hourly or half hour charts.

More information will be discussed in part 2 of the stock option trading series.

Tags: day trading futures, day trading options, emini futures, stock option trading