A simple definition of trend trading is to trade with the trends. But, a beginner will need to know what trends are and how they are followed.

Whenever we are trading (buying/selling) any type of security, we take advantage of technical analysis, which is a study of how the value of securities change over time. When we talk about a bull market, the trends are up, like the horns of a bull. When we talk about a bear market, the trends are down, like the paws of a bear.

During any trading day, there are often many peaks and valleys. Trend analysis looks at the bottom of the valleys over a specific period of time.

Analysts plot the low values over that period of time on a graph. Or, they may use available software to plot them. If the lowest values continue to increase, over time, then there is an upward trend.

Analyzing or identifying trends can be used to decide when to enter a market or when to leave it. Trend analysis is used by short and long-term traders, but long-term traders rely on the trends, more than any other analytical tool.

Historically, stock market investments have been safe, when held for 20 or 30 years. During the last three years, we have experienced a bear market. The trend is down.

Even though some investors lost money in recent years, they may have still had a net gain, depending on when they entered the market. Some investors were able to identify the new trend, the change from bull to bear, and exit the market with maximum profits.

When upward trends are experienced consistently for weeks, months or years, then the valleys seem to flatten out, many investors choose to sell at that time. They believe that the flat-line is a pre-cursor to a downward trend. Sometimes, they're right, but not always. Trend trading over short periods of time is akin to gambling. Sometimes, you win. Sometimes, you lose.

Advanced software has made it easier for investors to use trends and other analytical tools themselves. In years past, we had to rely on market analysts or investment advisors, who spent practically every hour of every day watching the market.

The definition of trend trading is simple. Learning how to spot the trends and take advantage of them can be difficult. But, at least it's getting easier.