Yes, I am trend runner. The trend runner is the most common type of stock trader, because he does not need to worry about any stock personality. He will use a series of support and resistance lines to identify the buying and selling ranges. Additionally, he will employ a host of technical indicators to aid in getting a better entry point. Take for example; use MACD indicator to identify stocks that are at turnaround point, and this can be further reinforced with the use of an oscillating indicator like RSI or Stochastic indicator.
You can imagine the trend runner to be like a machine in the factory. They will continually sieve out the stocks to find a counter that matches all their requirements. Once they find such a counter, they will then buy the counter, and sell it off once it missed it performance targets. These benchmarks are likewise set by the technical indicators in advance.The concepts may seem very technical to the stock trading beginner, but it becomes very simple once you learn how the key indicators works. It does not require you to know anything about the stock and quality of the stock. You trade primarily on what this set of indicators tell you about the future direction of the stock. In all its simplicity, there is a challenge for the trend runner: and it is not an external challenge, but rather something that runs deep in them. The trend runner has to fight the temptation of falling in love with their stocks. In the simplicity of the system, the key feature is that you should not hold on to any stock that begins to fail the criteria. It is like going to the grocery store and picking oranges. You pick up the orange from the pile, and evaluate its colour and radiance, if it is good, you put it in your bag; otherwise you throw it away. The trend runner has to constantly add to his position when the indicators show, even if he may feel uncomfortable. Likewisw, he has to close his positions, at the soonest moment that the indicators signal faults in his position. Unfortunately, the human psychology was not born from birth to manage greed and fear so smoothly. Thus, many trend runners lose money because they fall in love with their positions and hold on it, long after the indicators have shown to exit.
Now that you know what the trend runner actually are. If you would like to be trend runner as well, please join our forum and we shall discuss technical analysis of any particular stock in depth with the trend runners whole over the world!
