• The reason for using a trendline or moving average is to get an objective assessment of the price direction.
• Disciplined trading is most important because it clearly tells you when to get out of your trade and take your profit or loss.
• You can’t follow the trend and take profits at the same time. Profit-taking works with short-term trading, but profit-taking fights with the long term trend. You can’t hold onto a trend trade to get a big profit and at the same time take a small profit when things go your way for a few days. You’ll need the big profits to offset lots of small losses.
• In Trend analysis there’s no hocus pocus. Fundamentals, or value investing, may say that the company is in great shape while prices are falling. You’ll do much better trading technically.
