When to Get Into a New Trend When Trend Following?

This is no magic system or indicator to tell you when there is a new trend. You have to know exactly what you are risking, have a trading plan and simply get in! New trends, start out of quiet trading ranges. No one rings a bell. No one knows the future. Trend breakouts are notoriously fast, with many times few or no pullbacks.If you wait, you are not following your trading plan. The biggest issue is to have risk management in place and accept the inherent risks in trend following.

Once you think you have identified a new trend, hop aboard. Do not second guess yourself.

Jumping aboard a new trend is tough. You are the smuck who is buying higher. You did not get a bargain. However, high can go higher. This is trend following.

George Soros “Buy first, investigate later.”

Trade with a complete plan.

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 resource

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