Learn to Make Millions in Up or Down Markets

Trend Following

Michael W. Covel

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Basit ve kolay arasındaki ayrımı biliriz. Basit ve sağlam çözümler bulmak , onları uygulayacak insan bulmaktan daha kolaydır. Jason Russell
Sorunsuz bir yaşam hayal etmektense , var olan problemlerinizi çözün.
Reklam
When do trend followers enter? After a trend has begun. As I mention in Chapter 1, trend followers have no ability to predict when a trend will start. The only way to know that a trend has started is when it starts to move either up or down. For example, let’s say Apple is trading between 100 and 120 for six months. All of a sudden Apple jumps, or breaks out, to a price level of 130. That type of upward movement from a range is a trigger for trend followers. They say, “I might not know that Apple is going to continue upward, but it’s been going sideways for a while, and all of a sudden, the price has jumped to 130. I’m not in this game to try and find bargains or cheap places to buy. I’m in this game to follow trends, and the trend is up.” This approach is counterintuitive for many. One trend trader outlined the simplicity: “As our systems are designed to send a buy or sell signal only when a clear trend develops. By definition, we never get in at the beginning of a trend or get out at the top.”
Charles Faulkner quotes Ed Seykota as saying, “I’ve made phenomenal amounts of money for very simple decisions but I was willing to make them. Somebody had to.” Faulkner then comments, “Others are looking for highly complex ways of interacting with the markets, when most of the time it’s only the simple ones that are going to work.”
• It doesn’t matter what you think, it’s what the market does that matters. • What matters can be measured, so keep refining your measurements. • You don’t need to know when something will happen to know that it will. • Successful trading is a probabilistic business, so plan accordingly. • There is an edge to be gained in every aspect of your trading system. • Everyone is fallible, even you, so your system must take this into account. • Trading means losing as well as winning, something you must learn to live with.
Volatility, risk, and profit are closely related. Traders pay close attention to volatility because price changes affect their profits and losses. Periods of high volatility are highly risky to traders. Such periods, however, can also present them with opportunities for great profits.
Reklam
481 öğeden 1 ile 10 arasındakiler gösteriliyor.