For those who have never done it before, online stock trading can be a very scary thing. You fear messing up, getting in trouble, and possibly losing a good bit of money. I know the feeling. Up until August 4 just past I had not bought a stock in decades and never online. However, when I went to the bank and learned that our savings account, small as it was, was only drawing one quarter of one percent interest and that the best one could do was a 4 year CD at 3 percent interest I knew there was little choice if I ever wanted to see any accumulation of what funds we have. I took the plunge.

There are many market participants that are realizing buying for the long term might not be as risk free as they initially thought. If you would have bought stocks 10 years ago you would still be around break even. If you would have bought less time than that you might even be in a world of hurt right now. In other countries like Japan the notion of buy and hold is gone thanks to their major index hitting a 26 year low.

When people think about the stock market, the first thing you think about is the risk involved with it. The fact is, yes there is a lot of risk involved in the stock market, but there are many ways that you can find safe, low risk, trades that can be very profitable. I am going to show you a method that I have been using a very long time that let's me trade safely and know it will produce good returns.

The method I am going to show you is called trend trading. This is a very simple but effective method. With it, you will be able to find very safe investments.

In order to use trend trading you must first find a trend or pattern and its stock price. To do this, you need to find a stock and bring up a two-year chart of the stock price. In this chart, you need to look for any recognizable pattern then you can use as a guideline for investing. Not all stocks will have trend, but if you keep looking there are plenty of them out there.

Once you have found a stock with a trend, you can use that trend to determine what the best buy point will be. For example, say you find a stock with a trend that has the price rising gradually over five months, but then suddenly fall only to start rising again. You can use that information to know exactly when to buy and sell.

As you can see, this method at the possibility of taking much of the risk of investing and allows you to make consistent gains on investments. I've been using it for a very long time and it has worked very well for me.

Being aware of the dangers and cutting any losses you may have allows us to trade the markets with all of the risk that is involved and still be profitable. So yes, it is risky, but that doesn't mean you cannot be consistently profitable.

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