| JEFFRY TURNMIRE
Trends: 3 Common Ways To Ride Them Safely (and one uncommon way)
Trends are a natural part of the market, and they can be a great way to trade successfully. However, trends can also be dangerous, and it's important to be aware of the risks before you start riding them.
One of the biggest risks of riding trends is that they can end suddenly and without warning. This can lead traders who are not prepared for them to rack up significant losses.
Another risk of riding trends is that they can be very volatile. Picture when prices move up and down very quickly. It can make it difficult to trade profitably.
Finally, trends can be very illiquid. This means that there may not be enough buyers or sellers to support the trend, which can lead to large price swings. (more on this in a second)
So, how can you stay safe when riding trends? Here are 3 common ways traders mitigate
| | • | | Use a stop loss. This will protect you from losing too much money if the trend ends suddenly. | | | • | | Be aware of the volatility of the trend. If the trend is very volatile, you may want to use a smaller position size. | | | • | | Trade with the trend. This means buying when the trend is up and selling when the trend is down. |
By following these tips, traders look to mitigate their risk and increase their chances of success with trends.
I also promised you one uncommon way to stay safe when riding trends, so here goes:
| | • | | Spot the end of the trend… before it happens. |
Wait, what? How does someone do that?
This method is the most rare, probably because it’s so difficult.
It’s likely the one thing everyone would be doing if they could…
But this is the challenge I’ve aimed to solve with my latest project.
It’s called the VVD indicator.
And it uses a simple premise to find the end of trends.
First, you have to understand that ultimately, there are only two truths in the market: price and volume.
Everything else is noise:
| | • | | Headlines | | | • | | Sentiment & Emotions | | | • | | Analyst recommendations | | | • | | What your barber is saying about the market |
So with that as my premise, I took those 2 market truths and figured out how to use them to determine when a trend could be coming to an end.
If you’ve ever heard one of those talking heads on TV say “Stocks moved higher on lower volume today”, you’ll understand what I’m about to say next.
Usually, when you look at a stock chart and a stock is trending higher, you don’t see how many people are participating in that upward movement.
Even if you have volume bars along the bottom of your chart, you’re still only looking at the total trading volume, not the number of participants pushing the stock higher.
VVD is different from other volume indicators because it measures the amount of participants rather than the volume itself.
This is important because it can help us identify when retail traders are getting trapped in a trade and about to get "smacked."
When institutions step in and trap retail traders, this can create a big move in the market. And VVD can help traders spot that as it’s happening.
Long story short:
VVD is designed to spot short term trend reversals in the market — before they turn into a disaster.
I coded VVD myself and it’s taken me a year to get it to the point where it’s at now.
And now I want to take it to the next level. So I’m releasing it to a limited number of beta testers to get feedback so I can take it to a wider release.
There are some special perks that won’t be available anymore once this gets past the beta stage, so if this sounds like an interesting premise to you, I’d like to invite you to hear more about it..
I’m sharing all the details about the VVD indicator and how you can get in on the beta test today at 1pm Eastern.
And you can join me just by clicking here to save your spot.
Hope to see you there,
— Jeffry Turnmire | | | | |
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