Traders employ many different strategies to invest in the stock market today. One such strategy is trend trading. This is where a trader will try to profit from an asset's momentum in a particular direction. It can be achieved whether the stock pick is going up or if it is declining. Normally, if the stock picks are trending upwards, a trend trader will go for a long position and ride the uptrend. If the stock picks are in a downward trend, then a short position is taken. There is also an intermediate position that can be taken as well. The traders will remain in the position until such a time has reached where the trend has reversed.
The length of time that a trend trader may hold a position can be from a few minute to a full trading day. If you are trading stocks with a view to trend trading, you will need to perform a technical analysis after you finish stock picking.
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