Entries for Trend Following Stocks
Too many investors and traders focus on entries. Actually in my opinion they are the least important. However for the sake of explanation for trend following entries…..one can use Donchian breakouts, Channel breakouts including standard deviation breakouts, moving average concepts ranging from double to triple moving averages, macd systems as well as Stochastic concepts.
Entries and exits are only a small part of your trading plan. Much more emphasis should be placed on overlapping risk management concepts. I look at correlations between markets, risks per trade, total risk on the portfolio, number of positions, trailing stops, concepts of buying strength and selling weakness as well as many others.
In order to put one in the potential position for successful trend following they need a well thought out trading plan that includes the potential for every occurrence. Without this one would be simply gambling.
Trade with a trade. Know how much of any share you are buying. Why you are buying…where you get out with a loss or with a profit…
Past performance is not indicative of future performance