Certainty In TrendFollowing?

The only certainty in trend following is uncertainty. You never know which trades which work and the reality is that most trades do not work. Due to the fact that most trades do not work, you need to strongly focus on risk management. My goal is not to sugar coat or make you think it is easy to trend follow. Most people can not trend follow for a myriad of reasons. It is too slow…it is boring as well as the most common fact you need to be disciplined and patient.

How many people do you know that are on perpetual diets. What I noticed the other day while at the gym was there was alot of rather big people. Really dieting is based on simply eating right or reducing what you eat and exercise. However there are always countless new fads and books promising to lose the weight. It is the same in trading. There are all of those courses from supposed traders who are not traders as well as those not successful. We need to keep it simple- KISS!

My story about trend following is very simple. It is hard work. It can be very frustrating ( if you let it). I am chucking as I am writing this as I sold my US Dollar position as it hit my stop yesterday as well as my Lean Hogs only to turn around today.

Welcome to the world of trend following.

However if you can overcome the challenges you stand the potential to compound your way to wealth. I was told the most successful client of a brokerage in which I started with was a dentist. He compounded $200,000 from 1979 to over approx $17 million dollars plus accounts that he setup for his children & grandchildren. He went through both long and steep draw downs at times. He did not have any Holy Grail system. It was a basic and simple robust trend following idea with risk management. His success can be attributed to his trading mentality. He never gave up as ugly as it got. He did not quit or start looking for a new method or trading system.

There are many of you out there dreaming to be able to trade for a living. Trading for a living is doable ….it requires a great deal of work and effort. Do not expect to be successful right away. Would you want to go to a dentist who just finished school? I doubt it!

I will be very shortly teaching students exactly how I trade for a living. It too is not the Holy Grail. You will learn how to think like a trend follower as well as will give you the exact ideas. There is nothing to hide. Richard Donchian’s trading was very simple and well known, yet very few have emulated his success. If you want to learn how to trade for a living, I invite you to be one of my students.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING COMMODITY FUTURES, OPTIONS, AND FOREIGN EXCHANGE (”FOREX”) IS SUBSTANTIAL.