TradingBlog

Most strategies are based on trend trading. If the trend falls short, a well managed timing approach will exit to cash, or overturn position, with only a petite loss. When the trend keeps going, that same well managed timing strategy rides the trend as far as the trend goes. This is where the supremacy of trend trading is seen. By never misplacing a trend, and staying with the trend, trend following market timers make huge profits over time.

By no means let losses breed. If your strategy gives a buy or sell indication, and the indicators then go into reverse: reverse your position immediately. If you look at our various strategies, trade histories rarely take a loss of more than a few percent. It is easy to make back a small loss. Never set a profit target. Stay with the trend as long as it is profitable and never limit profits.

There is constantly a rationale to doubt a trade. The emotions caused by losses. Stick to the trading plan. Trade with the trend, slash your losses short and let your profits ride, and never, but never, listen to others.