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"The Trend is your Friend"
Whenever you invest, you do so with the idea of making money. This is true
whether you are investing in stocks, bonds, mutual funds or options. Determining the market�s trend is important part in deciding when to buy and
what to buy. For the market trend, you can watch the three main indexes -- the
Dow Jones Industrials, the Standard and Poor�s (S&P) 500, and the Nasdaq
Composite. These indexes are tracked by almost everyone who invests. Knowing
their direction tells you what the majority of the market players are doing with
their money. To determine the right position an investor should have clear picture about
primary trend. A lot of investors are interested in short-term trends by buying
options with 2-3 month to expiration and taking the profits or cutting the
losses during the first month. It's very risky to buy an options with expire
date less then one month. "The trend is your friend" is the motto of
each trader:
For Instant Access, Just one winning trade |
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