Another Trend Trading Example

This week, the markets were much less volatile relative to recent weeks prior. This is beneficial to this strategy, since no stocks were blown out of the water this week. Here is an update on how we are doing so far:



In comparison, the TSX has been down about 3.5%, the Dow Jones has been down about 1.5%, and the TSX Venture exchange has been down about 17% since the commencement of this strategy.


Here is this weeks stock that is currently in an unstoppable trend:


(please click here to see a larger image)


There are a lot of things that are interesting about this stock. One of them is how is reliably it breaks out of trading ranges and then explodes higher. Another is how volume tends to accelerate before price does. However, in terms of this strategy, the main thing we care about is that this stock is in a major trend.

Before I go, I'll leave you with some excellent Jesse Livermore quotes. Enjoy the long weekend!

"After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!"

"Disregarding the big swing and trying to jump in and out was fatal to me. Nobody can catch all the fluctuations. In a bull market your game is to buy and hold until you believe that the bull market is near its end."