SHARETIPSINFO >> Articles Directory >>Trend following in the stock market

 

When we say ‘trend’, we mean the general direction of the price the stock market.
Trend is determined by comparing both the price and also the average volume of trade in the market. Before you invest in stocks and shares, you should have some idea about the trend following in the stock market.

About market trend
Now let us try to understand what is meant by bullish trend. When there are more buyers in the market and the market condition is in the higher side, then the trend is known as the bullish trend. Now what is bearish trend? Suppose there are more sellers in the market but the confidence of the buyers are low, then the market is considered to be in the bearish trend. Remember that there also some intermediate trends that exists in the share market. In order to determine the overall market trend, price index and volume of trading are taken into consideration. People also go for day trading in the market to get good benefits. Some think that this type of trading has got the highest risk. But this might not be so much of risk as they think.

Be very careful when you invest
You will find a group of investors who does the trend trading. It means they are basically into buying and selling the stocks by trend that follows in the market. When you make up your mind to invest in stocks, then you should always consult a person who has got experienced in stocks and shares. You should be very careful when you invest in the market because a simple mistake could cost you a lot of time as well as money. You should make a good research of the Indian stock market. You should wait for the market so that the price of the stocks increases so that you could get good returns.

You should be well determined how long you are going to invest in the market. You should always get the idea of the trend following in the stock market because without it you would not be able to make a good decision. So, make a good research of the market and expect a good return from the stocks you buy from the market.

 

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