We have been trading since 2001 and at that time mainly applied scalping and day trading to the markets. However, we found this to be time intensive and stressful so in 2003, some two years later, we started trend trading.
Dynamic Trader was formed in 2006 after we had multiple requests for a couple of years to teach new traders in London how we trend trade. We found trend trading suited our lifestyle far more than scalping or day trading ever did. Having the ability to not to be tied to the computer during the day and the flexibility to take day trips and short holidays when we wanted was very important to us. We did not want to substitute working full time for trading full time. We wanted freedom with an income and trend trading seemed to provide that seamlessly.
What Is Trend Trading?
Trend trading is a trading strategy that uses momentum as a basis of entering an assets trend. When price is an uptrend a trend trader seeks out long positions and when price is in a downtrend, short positions are sought out. In essence, trend trading is trading in the direction of the trend be it short, medium or long term.
Learning how to trade requires a good understanding of technical analysis. While technical analysis sounds exciting and appeals to many new traders, it is actually quite repetitive and can be time-consuming. To avoid falling into the time trap of paralysis of technical analysis, we have automated the majority of our analysis.
Each weekend and each morning Dynamic Traders have the trade candidates available based on the trading strategy we should apply and the risk allocation allowed. In less than 20 minutes a day, we can visually see all our trade candidates with support and resistance automatically plotted along with trend strength on multiple time frames. We find the trade candidates based on our trend trading strategies and add some fundamentals but keep our technical analysis simple and charts clean.
Fundamentals and Investing
Dynamic Traders look to remain in trends for weeks to months and even longer. We do not look for short-term gains, we look for long-term trends that offer opportunities to compound based on our own private compounding methods. In order to find these types of trading and investment candidates, we use some fundamentals in addition to technical analysis. Our fundamental strategies and technical analysis strategies complement each other very well.
Keep It Simple
Dynamic Traders have a unique set of trading tools available in mainly eSignal but also in Trading View and Metastock to help with the hard work and keeping our analysis very simple. Clean charts, clear logic and simple strategies help our traders to extract profit during the trends.