Failure to Plan Is Planning for Failure
Failure to plan, is planning for failure is an old saying. It is appropriate for all aspects of our lives not just trading. Trend Followers succeed because they have a plan. This plan focuses on risk management along with discipline & patience.
To better define the statement that Trend followers succeed…is that they succeed over time. Not every month is positive nor is every year. The way to look at trend following is how much is my account worth at the end of 10 years. Assuming a 15% CAR, ones accounts size would 4 times in size. In 15 years that account size would be 8 times. There are many ways to succeed in the investment world, however I am hard pressed to find other strategies that are liquid & transparent as trend following.
Think of every possible outcome and have everything pre planned. Without this planning you open yourself up to failure.
Trading futures and options involves substantial risk of loss no matter who is managing your money and is not suitable for all investors. Past performance is not indicative of future results
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