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Learn How to Trade Stocks via Trend Following perspectives

I think some stock traders have a difficult time on the concept of “Learn How to trade Stocks”. These stock traders have an issue dealing with uncertainty because they basically think they are right, and are afraid of being wrong. They search for the ” Best Stocks” as well as Holy Grail indicators. After all, no one likes to be wrong about something they have researched out and committed to. The problem with this posture is that you are more reluctant to admit to being wrong, and therefore put yourself in a position to suffer catastrophic losses.
Here are a few viewpoints from Larry Hite and Salem Abraham ( famous trend follower) on managing risk and expecting the unexpected. You can not only be wrong, you can be totally surprised on occasion.
Larry Hite ( famous Trend follower) , one of the original “Market Wizards” was quoted On Michael Covel’s site as saying, “Most of the Ivy League guys I know are so used to being ‘right’ they get very uncomfortable dealing with uncertainty – when there is no right answer.
Their ego often makes them so afraid of being ‘wrong’, that they’re unable to make good bets. They are not comfortable with the idea of risk, because they don’t know how to assess it or measure it. [They have been] taught to absorb knowledge, not what to do with it.
There are just four kinds of bets. There are good bets, bad bets, bets that you win, and bets that you lose. Winning a bad bet can be the most dangerous outcome of all, because a success of that kind can encourage you to take more bad bets in the future. You can also lose a good bet, but if you keep placing good bets, over time, the law of averages will be working for you.”

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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