The Trend Recovery Method
A re-emerging bullish trend, following a market correction, can be a profitable investing play if you know how to spot the opportune time to buy into it and then manage your position thereafter.

The fourth and final trading method comprising the ETF Profit Driver course is designed to catch the market following a correction, as the market returns to its prior upward trend. Unlike the Trend Rebound Method, in which we are jumping on an existing trend following a pull-back, the Trend Recovery Method comes into play after the trend has broken down in a correction but is now reasserting itself.

As such, we are buying the market at a time of weakness after others have chosen to exit their long positions. Stop loss orders are applied to prevent significant losses if the expected return to an upward trend does not materialize. Capital is thereby preserved.

Profitable trades are exited in two stages, much as we exited positions in the prior methods. The initial stop takes a portion of our capital off the table, thereby locking in profits. The remaining capital is allowed to follow the trend with a stop in place to exit the position at strategic price points.

With four methods for buying Exchange Traded Funds and managing those individual positions, all that is left to master is portfolio based Risk Management And Position Sizing.

by TheOptionClub.com -

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