Investment trend is the process of seeking patterns that may predict how a stock will behave. This can be done with a variety of tools and resources, including online stock-screening apps. It also involves a degree of understanding of technical analysis, which uses patterns in price changes to make predictions about future trends.

The stock market is a puzzle of patterns that are constantly shifting with the ebb and flow of global events, investor sentiment and industry trends. Spotting these patterns can mean the difference between a breakthrough and a missed opportunity.

Whether you’re investing in a startup, real estate or a hedge fund, it is important to be informed and have a clear strategy for your investments. That way, you’ll avoid common pitfalls that can cost you money and lead to disappointing returns.

One trap that many investors fall into is making emotional decisions. It’s important to remain calm and keep a long-term perspective, as well as to diversify your portfolio and limit exposure to risky investments.

Other traps include relying on short-term gains and taking risks with unproven strategies. For example, if you’re in a bullish trend, it’s important to stay patient and not overextend your portfolio by buying too much of one type of stock. Instead, invest in a variety of stocks with different growth potential and be sure to monitor your risk level. Then, you can take advantage of the next investment trend without risking your capital.