Hey Traders,
I’ve been writing a lot about spotting trends lately.
Trends are important to me, because they’re the basis of everything I do.
I truly believe that once you understand trends and how to spot them, your trading changes completely.
If you missed my past articles about spotting trends, here’s probably the most important one. It tells you the 3 indicators you need to add to your chart in order to see the markets the way I do.
To get some “live fire” practice, you can check out this market review I did a few weeks ago and this one I did just yesterday.
In those videos, I pull up a chart with the same 3 indicators and show you how I use them gauge the market’s momentum.
Ok, now you’re set.
Let’s Test Your Trend Spotting Skills
Now that you’ve got a background in spotting trends, let’s put your skills to the test.
This is an open-book test. And don’t worry, nothing goes down in your permanent record.
Once you do this exercise, you’ll either know that you “get” trends or you need to build that skill some more.
Ok here we go:
Once you’ve added the 3 trading indicators I mentioned in that first article… I want you to pull up the following stocks one at a time and write down whether that stock is bullish, bearish or unsure/stuck in no man’s land:
- CNM
- ZS
- AKAM
- AAPL
- FTAI
- MAR
- PGR
- TSLA
- DELL
- META
Remember, we’re doing this to understand trends. So for the moment, put aside:
- any other trading strategy you use
- anything you’ve heard in the news
- any emotions or hunches you have about a stock
Take the weekend to do this exercise and on Monday I’ll have the answers for you.
Remember, there are only 3 possible answers for each one:
- bullish
- bearish
- unsure/stuck in no man’s land
This exercise is going to increase your confidence because you’ll either know that you understand trends or you’ll know that you need to build that skill a little better.
UPDATE:
The answers have now been posted. But don’t peek if you haven’t given it a shot yourself!
You’ll only be cheating yourself of a valuable opportunity to see how well you can trendspot.
Trade well,
Jack Carter
