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No Predictions for Trend Following

No predictions for Trend Following: Trends exist everywhere. You will find trends in currencies, stocks and commodities. However no one ever rings a bell when a trend starts or stops. Markets trend up and down. The reality however is that no one can predict a market trend ( even all the speakers on CNBC & Bloomberg). Successful trend followers know they can only react to trends. Trend followers never anticipates the beginning or end of a trend. Trend followers with a plan only act when the trend changes. There is no need to figure out why a market is trending, just follow it. You don’t need to understand electricity to use it. You do not need to invest all of your time and energy trying to find the holy grail. Simple robust ideas have the propensity to work over time.

Forget about predictions for trend following. Forget about how to avoid losing trades. Forget about trying to know when a trend begins. Only in retrospect are trends obvious. Trade with a plan that fits your personality. Accept the uncertainty in the markets.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts, commodity options or forex can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

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