All language subtitles for 8. Trend Lines Final Thoughts

I'd like to leave you with some final thoughts around trend lines are obviously a very important core

part and many people just trade off trend lines.

So let's wrap up with a little bit of some final thoughts around trend lines.

First off, it may seem a little complex at first, like when do I start?

When do I and again, extend out that line.

But, you know, starting picking, it's a little bit more dynamic of a process.

And you understand it will get easier with practice.

Right.

And you'll start seeing it, you know, start making sense.

And it'll be it'll be it'll be fine.

You'll be fine.

So it'll get easier with practice.

And the trend in trend lines are an indicator.

There are tool, just like there are other indicators out there as you're learning in the course.

And so you can choose the indicators that you want to use.

Right.

So you can always do that.

And there's an indicator the trend line and trend lines are trying to show you.

Is there an established trend?

Is that established trend upward or is that established trend downward?

And so that's the whole idea of it.

Right.

And it's great to combine with other trading indicators.

So if you have an upward trend, you can use another indicator, like a moving average crossover Bollinger

bands, lots of different indicators out there that we're going to learn about.

You can or candlestick patterns, for example, and then you can use that with other trading indicators

and that'll help give you further confirmation and confidence in your trades and also confidence in

confirmation that you've drawn the trends correctly.

And that's all making sense and working out and being as predictable as anything can be.

And that's the idea of a trend lines as they're a very strong indicator around that because you want

to trade off trends, because that's much more predictable than kind of just guessing out there.

Right.

So if there is no trend, if there's no indication of a trend, there is no trading opportunity.

You don't have that prediction ability without some type of trend either up or down to see what might

be happening next.

That's where the phrase the trend is your friend comes from because it helps you with that prediction

aspect and then helps you to manage your trades and make decisions based on that technical analysis

and logic versus, you know, other ways people might make trades.

You know, the weather might be.

So you're trading on trends means you're not always in the market.

And all the securities who follow you might be following a basket of securities, you might be in the

market or you've got trade out there.

And some and others are on the sidelines waiting for some type of trend that you want to trade to develop.

So that's where you're in and out in different securities at different times with the goal of making

profit as you use all these indicators and building up to a total profit and success is the idea.

But the trends are something that you need to develop to and you need to make sure and firmly established

that a trend has developed frailing where people may struggle as they try to jump in too early on a

trend without waiting, even at least for a second touch, that the trend is established, let alone

maybe a third touch.

That might be much more confirming.

So you have to be patient with trendlines, right, so you have to let that trend develop once it develops,

you know, then then that's good.

You want to make sure that trend line develop.

And another thing that people can struggle is that they try to make the trend line fit.

They really want to buy security.

They think it's going to go good and it's starting to look good and they really want to get in there.

But it's the trend isn't established yet, you know, then you're at much more risk.

Right.

And you're not training on a trend.

You're much more risky.

And so trendlines help take out some of that risk.

It's also very dispassionate.

You're not based on hoping.

You're based on, you know, math statistics and logic and things like that.

So up and also that herd mentality and trading mentality where lots of people are buying in, they're

seeing a trend.

They're helping reinforce the trend.

You're seeing it, too, and you're getting in at the appropriate point.

And then you're making your profits as well by you know, by trading with these trends.

Is the idea in a dispassionate way.

And the other thing, as far as a final thought, and this I think is very important, is you don't

have to be perfect, right?

You don't have to be in your in your trend line drawing.

You want to be good.

You want to keep getting better all the time.

But don't beat yourself up like I thought there was a trend because sometimes it looks like a trend

ends up not being a trend.

Things that look like a breakout are just a false breakout.

And this is just reality of trading life.

There's winners and losers in your trades, that's all.

OK, it's a whole process like, well, really the course.

We're going to learn about how to manage your investments, too, as part of this, too.

So it all goes together.

So you don't to be perfect and let's say you're trend dry and you don't have to be perfect, perfect

in your trades.

You're going to win some, you lose some.

It's hard to get in profligately at the bottom and perfectly at the top.

Right.

I'm going to say hard.

What's the say?

It's impossible to do that consistently, but the idea ideas, you're getting close enough towards the

bottom and closer to the top that you're making that profit in between and you're using your tramlines

to help you do that.

In fact, a really good quote around that idea is, you know, this from Bernard Baruch, which was

I'm willing to let others have the first third of a move and the last third of a move.

I want to be in the middle third.

All right.

So look at our image here.

Right?

We're not trying to buy at zero or No.

One touch of, let's say, an upward trend line.

You know, we're buying it number two or three.

And then we're not trying to, you know, sell exactly a five, six or seven or whatever you want to

write it for.

Necessarily know we're trying to sell close enough that we make a good profit in there.

So the idea of that is we're trying to say is be patient, let the trend develop, reduce that risk

by letting the trend develop.

Don't don't buy into something.

You think you said touch no one.

That's not a trend yet.

No.

Two or three is a much better indicator.

See, reducing that risk.

Be happy with all the profits in that bulky middle third.

Right.

The profits between number two and number for are great or number three or number four are great.

You're doing that over and over again.

That's can be very profitable for you.

So don't worry if you like it.

We thought, oh, I got in too late or I got into early, enjoy that middle third.

And then, you know, it's kind of that idea.

The trend is your friend.

You need to have that trend established so it'll be friendly to you and be really real profitably,

too, for you as well.

So there you have it with trend lines.

I hope you enjoy the section and start practicing in the more you draw trend lines and we're used here,

you're trading platform to draw the lines and the experiment with a certain stocks.

Use that paper train to practice and see, you know, how how we earlier you're analyzing things without

real money.

Use the paper trading to help with that, you know, and using fake money type accounts, they'll be

real helpful for you because you're going to start developing that skill and you're going to start seeing

these trend lines.

You'll start to see them easier, better.

And then you should start overlaying other indicators on top of that, like chart patterns or candlesticks

or moving averages or relative strength index, all these different indicators.

You're really coming together as a strong trader, and that's my hope for you.

So with that trend lines and remember, what are we going to save?

Like the one time the trend is your friend.