Thursday, March 12, 2009

Trend Following

A trend following setup CANNOT answer the following questions:

1) Why the market is going up or down
2) How long it will continue going up or down
3) How much it will go up or down

What a trend following setup CAN do:
Make money for you in a systematic way based on probabilities and momentum and help eliminate emotions like fear and greed.

It is boring but makes money at the end of the day. Amen!

At the time of this post I am long on the Nifty. The positions seems to be working against me and will probably end in a loss - which happens in 50% of the cases. But the setup still makes money when traded with discipline.

No comments: