Trend followers are people or investors who observe and follow current patterns or popular directions in markets or society. They tend to make decisions or investments based on what is currently popular or expected to grow in popularity.
Full definition
This market has been great
for trend followers and buy and hold investors but swing traders have been locked out and day traders are wanting a wider daily trading range.
This is what can make
trend followers who think in terms of position sizing much more successful than others.
Many
successful trend followers can have low win rates under 50 % and still be profitable because they ensure their losses are small and their wins are big.
The first wave of gains are brought on by the «smart money,» only to be followed by a second round of gains
from trend followers.
Lower winning percentage systems are primarily used by long
term trend followers, breakout traders, and option buyers.
While these are fascinating findings in the medical world, the
average trend follower is probably not interested in these health benefits.
Not that I'm a
total trend follower, but I don't want something I spend a lot of money on to look outdated in a year.
I take the holiday periods to look at trades I took and ones that I did not take in order to become a better
stock trend follower.
We
as trend followers are not getting these pitches... Rather striking out... small losses... and simply more small losses.
Although this is a necessary trait
of trend followers, you should only use trading strategies that you are comfortable with.
Another reason traders &
trend followers do not cut their losses is they believe they are right.
As I am not a
huge trend follower, I wear these all the time anyway, but I must admit I do appreciate when they pop up.
An
experienced trend follower will know that he will lose on the majority of his trades, so it is imperative that those losses are kept as small as possible.
In this video regarding trend following you can get some ideas in order to help you become a better
trend follower by looking at the long term via weekly charts and weekly moving averages.
On top traders they post fascinating interviews with
legendary trend followers such as Jerry Parker... and many other traders.
As
most trend followers know, we are going through a tough period.However there are always tough periods.
Yesterday's Nikkei drop by 7.3 % wrecked havoc for many stock markets around the world as well as
trend followers portfolios got whacked.
This would break the downward sloping weekly trend line and force
many trend followers banking on Fed action for the long - term to rethink their positions in the near - term.
Whether you're an
avid trend follower keen to implement them all on separate occasions, or you prefer to just nod to them with one or two key accents, don't be afraid to experiment.
Hello Parry, the online Perth badged retailer has rocketed to the top of everyones hit list, with fun, right now pieces to equally
suit trend followers as classic minimalists.
If prices go parabolic and we end up in a Hyper inflation state,
trend followers stand the possibility of following the ascent in the upward movement in the pricing of commodities.
It is very common
new trend followers over ride their systems when they profits start to evaporate.