Here are 5 ways I ride a trend after getting in. Ideally buying a stock that breaks out of a long term range into a new all time high is the best spot for maximum gains. Here are the spots to keep an eye on in an up trend.
- First of all look to go long stocks when the general market is in an up trend. You should be looking to buy stocks in a bull market and go short in a bear market. Bull markets will have the short term moving averages over long term moving averages in the indexes. Like the $SPY with the 10 day over the 50 day.
- Hold a stock as long as each day makes a higher high and a higher low.
- Hold a stock as long as it holds above a short term moving average like the 5 day ema or the 10 day sma.
- Keep holding a long term position as long as it stays above a long term moving average like the 50 day sma.
- Hold a stock that has support with a lower trend line.