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Trend traders typically manage their trades with wide trailing stops. If you use too tight of a stop loss, you’ll get “stopped out” too soon and potentially miss the big move you are looking for. Many traders will tighten their stops too much right after their stock has jumped a few points.
These tendencies are not usually stronger than overall market conditions, but they do play into price fluctuations. In the event of a relatively tame stock market, a seasonal trend may offer greater influence on price movement. When market conditions are particularly dramatic, however, seasonal trends usually have little influence. For fragrance and beauty, consumers are looking for products that provide essential hygiene protection, support their wellbeing, and allow them to look younger for longer.
On the other hand, if you don’t continue to meet the needs and interests of your customers, you will be left in the dust as they move on to the products they desire. Since market trend analysis involves understanding past market behavior and expected future market innovations, a major effort in conducting trend analysis is dedicated toward collecting relevant data. The authenticity of this data determines the accuracy of the projections, which subsequently impacts the objectives set for a particular product or service.