The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be answering the question, “Is there any validity to “The trend is your friend”? If you've probably heard the term or the saying, “The trend is your friend” and the idea behind it is that we generally want to trade or move our positions in the direction of the overall or prevailing trend. The question of the day is – “Is there any validity to this trend is your friend talk?” And I think in many respects, there probably is a lot of validity to it when it comes to maybe longer-term trends as opposed to shorter-term trends. We all know that it's incredibly hard to predict where the market’s going to be in an afternoon or a day or even a couple of weeks, but the further we go out in time, there's definitely trends that start to form. We have bullish trends, we have bearish trends, we have cyclical trends in markets and I think that those are something that you should definitely be aware of and you can