Chuck Hughes

‘Investing with the trend’ is an important requirement for profitable stock investing for investors with a short term time horizon. Timing is everything. If you are a short term investor ‘Investing with the Trend’ should be your investing mantra. Regardless of which investment strategy you use to buy and sell stocks there is always ‘entry and exit’ timing risk for short term investors.

I like to use moving average ‘cross overs’ to define the short term price trend. For example, my Fail Safe EMA System uses 50-Day (fast) and 100-Day (slow) Exponential Moving Average (EMA) ‘cross overs’ to define a trend. A price up trend exists when a stock’s 50-Day Exponential Moving Average (EMA) line is above the 100-Day Exponential Moving Average line and the stock should be bought. A price down trend exists when the 50-Day EMA is below the 100-Day EMA and a stock should be sold. This is a simple but effective system for buying stocks when they are in a price up trend and selling stocks when they are in a price down trend.

Note: Chuck Hughes placed second in the 2006 World Cup Championship of Stock Trading, first in 2005, third 2003. Don't know how he did in the other years.