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Reasons Are Irrelevant When Trend Following

Many beginning traders want to know why this move happened or that move happened. Actually Reasons Are Irrelevant! What is relevant is that you saw something familiar and executed your trade in the direction of the trend. This is what is important. Get out of the realm of trying to figure out the whys. They […]

Typical Trading Errors When Trend Following

Who really wants to define a loss? Only smart trend followers. Most people think they can postpone a loss. They become investors instead of traders. Many refuse to define a loss. I have seen traders not close a losing trade, after they realized that the trade’s potential is greatly diminished and has gone against them. […]

A High Level of Education Does not Make you a Better Trader

A high level of education can be a handicap in trading. Brian Monieson, a noted Chicago trader, once said in an interview,

“I have a Ph.D. in mathematics and a background in cybernetics,

but

I was able to overcome those disadvantages and make money.”

Many professional people are preoccupied with being right.

The key […]

The Difference between Beginning Traders and Successful Traders When Trend Following

When the market gives no clear signals to buy or sell short, many beginners start squinting at their screens, trying to recognize trading signals. A good signal jumps at you from the chart and grabs you by the face—you can’t miss it! It pays to wait for such signals instead of forcing trades when the […]

Mechanical Trading Systems and Trend Following

Mechanical trading systems are not retirement in a box. There will always be draw downs and periods of elusive profits. People try to avoid losses and drawdowns even within their mechanical systems. It is ridiculous. You can never avoid losses. Trying to outguess your trading system is an exercise in extreme frustration. Sometimes the system […]

My Daily Trend Following Mantra to Build a Proper Mindset

Before trading in order to ensure my proper trading I have a mantra or a list of affirmations.

Please uses these affirmations and you will start to be on your journey of successful trading. Successful trading is more of a psychological game then learning a particular strategy or methodology. You learn about yourself. You […]

Avoiding Losses When Trend Following or Knowing the Future

I received this email and thought to share with all…

Hi Mr. Abraham, I’m 24 year old and want to achieve something. I like very much your honesty and sereneness about trading, Question: How can i learn to JUST know or some what predict what the closing price is going to be for each end […]

THE PREREQUISITES OF TREND FOLLOWING SUCCESS

THE PREREQUISITES OF TRADING SUCCESS

The nature of this business requires a set of personal attributes without which I doubt anyone can build a consistently successful career as a trader, speculator. or investor.

First is a soundly based self-confidence, a realization that your mind can learn the truth and apply it with positive results in […]

Trend Following Lessons 101

1. Trade with an edge—Make sure that you have a trading strategy that will make money. 2. Manage risk—Don’t trade with so much leverage that you risk losing everything. 3. Be consistent—Do this to reap the benefits of your trading strategy. 4. Keep it simple—Don’t try to make trading more complicated than it actually is.

[…]

David Harding from Winton Trend Following Legend Fantastic Quote

David Harding from Winton a Trend Following Legend is managing in excess of $20 Billion dollars.

This is a fantastic quote…

We know that we know almost nothing. but the “almost nothing” we know isn’t completely nothing, and we only bet on that.