When you are just beginning the journey of analyzing stock market trends, there are likely to be many questions. What makes certain stock market trends different than others? How do you capitalize on certain stock market trends? Why are some of the stock market trends so confusing? This article should clear up the confusion and put you on the right path.

Not all stock market trends are created equal. Some are more powerful than others. Some are more predictable than others. In the end, it’s important to learn as much as you can about each and every one of the stock market trends, and decide for yourself which of them you will be using for your own stock trading account.

The oldest of the stock market trends is not to fight the tide. If the market is moving in particular direction, do not look to go against these, but rather look to get on board the move. This may sound obvious, but there are so many investors and traders over the years that have been wiped out because they felt the market has gone too far up or down and that price was due a reversal. Instead, the market kept moving in the same direction and stomped all over those that were looking to fight the stock market trends. While there may be opportunity going against the dominant stock market trend, that opportunity will usually be a higher risk and low reward one. By following the move, you get to turn that into a potentially higher reward low risk trade. This is what all good stock market trends should set up as.

Stock market trends repeat over time because they are playing on human being’s emotions and memory. It’s not a coincidence or hocus pocus that a certain time of year outperforms another, or that a certain announcement will spawn a market reaction. Over the years, investors are almost expecting to certain things happening at certain times, and they will often times position themselves accordingly. It takes a few years in a row for these stock market trends to fall on their face before investors stop completely following them, but it does happen. A few years in a row where something ceases to yield profits will often lead to a complete disregard, and a move to what is working now. Occasionally, stock market trends will reignite, which is why there are countless books written on the subject of stock market trends.

Starting out with the best stock market trends allows the new or even seasoned investor a chance at following the tide, and not fighting it.