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Kavan Choksi- An Overview of Trend Investing in The Stock Market


Stock trading should not be done on a short-term basis as this practice is not sustainable for you to earn lucrative returns. In order to achieve success in the stock market, you should focus on trend investing. This is a practice where you observe a single or a group of stocks that rise and fall in a similar manner. 


For instance, if the stocks of technology companies are going up, this is a significant indicator for you to make an investment in them. Seasoned traders in the stock market use this technical analysis to generate returns on their investments successfully. 


Kavan Choksi- understand the strategies for trend investing in the stock markets


Kavan Choksi is a widely respected wealth management consultant, an expert in business management, and an investor. With his expertise in finance and economics, he has helped several companies revitalize their businesses and make the most out of their money in the financial markets. 


An overview of trend investing 


When it comes to the subject of trend investing, he says that it is the process of placing all of your money in industries, stocks, or markets that are expected to boom consistently in the future. The idea here is to ride on the trend up till it is the right time for you to exit from the market with large profits. 


However, before you invest in these growing value stocks, you must conduct adequate research so that you can embrace the best practices for stock trading. 


Critical strategies for understanding trading patterns 


You should observe trading patterns and look at the changes in prices before you fix your own parameters for stock trading. For instance, you can examine the cost of the stock that drops to a low level before it hikes up and again drops back to its previous levels. Investors of this strategy call it the support level, as, in theory, it is a point where there is sufficient demand to keep the stock from dipping below that specified level. However, if the level falls further, you should exit the store immediately. 


Rate of change


Rate of change is another popular strategy that explores the current price of the stock in relation to its price at a previous point that existed in the past. Again, there is another strategy known as the moving averages indicators, where technical analysts focus on the moving average of the stock. It is fundamentally the average cost of the security over a time span for a specific time period. For instance, if the time span is 200 days and the stock price either increases or falls sharply during this period, it could indicate a trend. 


Business and finance expert Kavan Choksi states that there are many tools and credible resources that give you an insight into trend investing. Market timing plays a crucial role here. Trend investing largely depends on information from the past, and financial analysts in this field believe that it is this past information that will help you to depict the trends of the future successfully. 

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