gold, page-49562

Dentie
. Firstly my comments regarding 10 year olds and trends was serious.
. The most money in markets is made from following a trend which is already established and then having a defined strategy as to when a trend should be exited. This latter is a large subject and is for another day.....suffice to say that even something as simple as a 13 day moving average breach is a whole lot better than no strategy at all.
Finding a trending stock means looking at lots of charts. As there is much ‘noise’ in daily charts many recommend looking at weekly charts. A great alternative is looking at daily Heiken-Ashi charts which many brokers have as part of their ‘free’ charting package. (eg CMCMarkets). The H-A charts are candle charts which (sort of) average a couple of days candles.
A strongly uptrending stock should have higher highs and higher lows. Have a look at BHP: it has been in a strong uptrend for quite a time.
Unfortunately, many punters run around trying to find a penny stock which they hope will be worth $3 next week. These stocks are usually highly illiquid, and if things don’ t work out...and usually they don’t, you cannot give them away. To my mind you are better off trading large stocks using leverage if you must as you can always exit.
Chart patterns..buy/borrow ‘Encyclopedia of Chart Patterns’ by Thomas Bulkowski. A great work which dispels many myths and has a strictly scientific approach to charts. (the author was a very successful trader)