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Im sure youve heard all the experienced, senior traders talking about how going against the trend is suicidal. Basically, the rule is if a stock or foreign currency is trending up you should never ever short and that if the trends going down, you shouldnt buy. There are actually major trends that you should be keeping an eye out for and should be part of the factors that would affect your decision as to short or not to short a stock.

Watch the overall market. This is because stocks often tend to react based upon what the market is doing. During say an apple market you might find great bargains but there wouldnâ??t be as much pressure to buy as there is in a lemon market. This can actually hurt the stocks ability to go higher, it doesnt even matter how great of a company they are.

The second trend to watch out for is the industry groups. It is often said that as much as 50% of a stocks movement is based on the industry group it belongs to. Considering that fact, it really is no wonder why checking stock industry groups is a very vital step. Logically, if oil is going up then it follows that most of the companies that drill for oil would go up to.

The last yet also important trend to watch is to be aware of the stocks, individually. In the end, it these individual stocks that we are trading. Perhaps the most important thing to remember is to be on the right side of the stock trades. As you can see, your odds at gaining better profit is more likely if you have the trends at your side. So instead of going against it go with the flow.