Market Cliches: Learn and memorize those market cliches. They may be repeated a lot by websites, brokers and the like, but they do hold some value in their lessons.
Let's talk about my favorite cliche: "The trend is your friend."
One might argue that the most important tip to successful trading is to stick with the trend as much as possible. I'm not sure who said it first, but they clearly knew the secret to making money in the markets. Any trader worth their salt will tell you that, It's easier to make money trading with the trend vs. trading against the trend.
It's something to think about next time your researching that next great trade. Am I going with the flow or not?
Here are a few more of my favorites:
"When in doubt, get out."
"Don't try to catch a falling knife."
"Sell in May and go away."
"Buy the rumor and sell the news."
Every success with MarketClub,
Join MarketClub with this Special Holiday Offer..
Finding A Friend In The Trend
"The trend is your friend" is an important trading guideline.
In 2008 we witnessed some massive bear trends in the equity and crude oil markets as well as many other freely traded commodities and currencies.
Because trends persist for long periods of time, a position taken with the trend will more likely be successful than one taken randomly or against the trend. Trading with the trend in a bull market means buying on dips; in a bear market, selling on rallies. Read more here
This is a good lesson to remember on why markets trend. Are we expecting some big trends in 2009? You bet we are. Look for big trends in gold, the dollar and crude oil in the new year.