Trend following is a strategy in which a trader buys a stock after it has increased in price, then sells it when it falls in value. Trend followers believe that markets tend to go up over time because of the ebb and flow of the business cycle. Yet, most of the time, trend followers are losing money. They win only during the times when the market is trending.
Trend Following
Trend Following
Trend Following
Trend following is a strategy in which a trader buys a stock after it has increased in price, then sells it when it falls in value. Trend followers believe that markets tend to go up over time because of the ebb and flow of the business cycle. Yet, most of the time, trend followers are losing money. They win only during the times when the market is trending.