Trend Following Takes Advantage of Mass Psychology

Trend Following takes advantage of mass psychology. Trend followers understand human nature.The impulses of fear, greed and ego are the norm with most traders. Trend following takes advantage of these impulses as well as the common herd mentality. For most traders it is much easier to go with the crowd than be different.Too many people try to take the easy path. Many traders are simply driven by the news. Trend following wins over time because of this as well as the lack of plan of most traders.

Going with the crowd is not the way to compound money.Having a well thought out trading plan gives you an edge in your quest for compounding money.

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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