Just about all stock traders don't know that trend trading is actually trend following.

Let's examine the term Trend Following. The first part is trend. Every trader requires a trend to make money. If you contemplate it, regardless of what the technique is, if there's not a trend once you buy, then you will be unable to sell at higher prices. The second part is following. Trend followers will have to wait for the trend to establish itself, then follow it.

Trend Following seeks to capture the vast majority of a trend, up or down, for profit.

A trader has a specific plan or tactic to put capital into a market in order to achieve a single goal: profit. Traders will not care what they own or what they sell providing they end up getting more money than they started off with. They are not investing in anything. They're just trading. It is an significant distinction.

Trend followers are a kind of technical analyst that neither predicts nor forecasts. This kind of technical analyst is based on price. Trend followers make up the group of technical traders who make use of this sort of analysis. Instead of trying to forecast a stock's direction, their tactic is to respond to the market's movements whenever they occur. Trend followers react to what has occurred as opposed to predicting what will happen. They try to keep their approaches based on statistically confirmed trading policies. This permits them to target the market and not get emotionally involved.

Price analysis never will allow trend followers to enter at the exact bottom of a trend or exit at the exact top.

Trend followers create awesome returns because their selections are ultimately based on one piece of core information: price. In an increasingly uncertain and, as of late, downright unfriendly world, it is very efficient and effective if our decision-making is based on this singular, uncomplicated, reliable truth. The continual battery of fundamental data, for example price-earnings ratios, harvest reports, and financial studies, plays into traders' tendencies to make trading more complicated than it needs to be.

Stick To The Trend

Do not attempt to guess how far a trend may go. You can't. Don't read PR releases and try and speculate just how long the trend may go. Price makes news, not the other way round. A market is going to go the place where a market is going to go.

The idea of price as the trading cue is way too simple for traders to accept.

If a stock goes from 10 to 8, a losing trader who looks at fundamentals will think maybe it's a better buy. But a winning trend trader will figure he must have been wrong about something and get out.

Trend followers are in the moment. They already know that attempting to forecast the beginning or end of a trend is useless. When trends begin, they often arise from a flat market that does not seem to be trending in any direction. The idea is to take small bets early on in a market to see if the trend does indeed mature and get sufficiently big enough to make money.

Really big losses rarely befall a trend follower since he decides to eliminate or reverse his position as soon as the market goes against him. Numerous little losses are inevitable. The rationale for hanging in is that any price move could possibly be the beginning of a trend, and the periodic big breakout justifies a string of small losses.

For even more educational trading lessons have a look at these three good resources:
The Greatest Surprisingly Outrageous Stock Trading Rules Of Numerous Traders
Stochastic Divergence Indicator Lesson
Stock Market Lesson - Will You Be A Dumb Dog Stock Trader