The Philosophy
Trend following is a methodology of trading. There are many different strategies to use within the methodology. Most strategies are very simple to employ yet very difficult for some people to stick with. The concept is simple, stay in a trend as long as it is there.
Trend Following is a systematic approach to trading stocks. A Systematic approach vs discretionary. System trading is technical by nature, meaning that trade decisions are based on a system of price or indicators based on price. There are almost as many systems as there are traders. Some work and others don’t, some are easy to use some are very difficult. Systematic trading takes discipline, trust and patience. System traders understand two things very well. We will have draw downs (periods of losses), but we also know that trusting a system will offer gains in the future.
You see, what happens to most traders is you want to find the crystal ball, the holy grail of trading and making money. Once you have “found it,” it invariably changes and you must move on looking for the next crystal ball. The cycle ends when your out of money.
Discretionary approaches imply that “you” are the edge. You somehow have a sixth sense about trades and have a lighting fast method to squash the market. You know exactly what your looking for and you decide when the stock is about to catapult to monstrous gains. You have cat like reflexes as your eyes bulge bloodshot at 3 monitors, and your caffeinated, twitching, trigger finger gets super punchy at any tick on your level 2 day trading account! You are the man (or woman) you are the guru. How’s that been working for you? How many times have your guru senses changed during a losing streak? How many times have you swung for the fences because “This is the one”! Well there is a better, less stressful way to do this.
The Market Trend Signal trading system provides a system for finding and trading stocking using a trend following method. Click on any of the 30 day free trial links to learn more about the trend following stocks system
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