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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 do not matter. What matters is that you followed your trading plan and executed. The vast majority of traders know what to do…however they fail to execute the trade. In most cases due to fear. Know exactly how much you are risking on a trade…accept the fact the trade does not have to work. Accept the fact, yes you can lose money on a trade. Accept the fact you must have stops and not turn a trade into an investment that you lose a lot of money on.

It is the same analogy with a diet. Everyone knows to eat less…but how many people stick to their diets. Not many…
If you want to succeed in trend following and trading..do not look for reasons. Look to build a trading plan that you can execute & believe in.

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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