Successful Trendfollowing of Stocks, Forex or Commodities you need a plan
The single biggest mistake traders make, is thinking that investing and trading is “Easy.”
They allow themselves to fall for advertisements promising, “You can get rich by trading” or “Earn all the income you’ve ever dreamed of” or “Leave your day job forever
& live off your day-trading profits.” Trend following is not retirement in a box.
You have to work.
The actual tenants of successful trend following in their essence are basically simple and intuitive in nature. However in practicality trend following is very difficult.
In order to succeed over time with trend following you will need to internalize and make these tenants part of your trading.
It is imperative for your long term success to always cut loses short and take low risk trades. You will realize when you start trend following if you haven’t already that many trades simply do not work. The fact that you will be taking low risk bets and keeping loses manageable are the cornerstone of successful trend following.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING COMMODITY FUTURES, OPTIONS, AND FOREIGN EXCHANGE (”FOREX”) IS SUBSTANTIAL.