Trend Following

[iamamanParticipant 11]

Rule 1 > You can trade anything under the sun: A stock, a commodity, a currency or any of them security prices are self similar in their randomness (priced in USD or GBP, or moves $2 or $15 dollars a day, it does not matter, and therefore not it does matter into which fractal dimension such stochastic process occur, with few adjustments we can trade anything under the sun if we simply use simple mathematics to adjust for, from currency crosses to options derivatives)

Rule 2> No body control Price: Over the long run, price will go where price will go, even if real conspiratorial actions happen in real life, like the drastic shoot down of oil price nowadays (Dec 2014),  after so on the exchange market,  price at first may not reflect reality, but later on reality will reflect price at some point, as HFT (high frequency trading) algorithms begin to dig in for profitability (look it up), coupled with banks and hedge funds statistically savvy trading systems, along with dumb group decision making of humans in case of trading stocks or ETFs.

Rule 3> Trend Following: Go with the trend

A price gone down does not mean it has become cheaper, because:

1. A Declining stock price means it is getting cheaper for a reason, so never buy at low, but instead you will sell at new lows.
2. You will sell a declining price, then sell again and more later if it keeps declining, or vice versa.
3. Trading on exchange is not like trading a commodity in real life, where in real life such commodity real inherent value which deteriorate in time, because on Exchange based trading there is no inherent value, as you have bought or sold a certain amount at at certain time, be it on margin or actual value, your trade value starts at ZERO or even in the minus if you factor in spread plus commission or other such cost of trade, your position value will only increase or decrease as price change in time. So there is no such thing as investing, This is trading.
4. Never average losers buy selling or buying more to cover your losses, a good trader love taking many small losses to avoid catastrophe, and at the same time a good trader hates taking premature profits in order to maximise profits (as long as the trend keeps going), so emotions aside.

Rule 4> Study Trend Following, it is not something you can buy from someone, look it up.

Rule 5> Risk management is king, you cannot predict market prices into the future, but you can predict loss by controlling position sizing and stop placement, so yes entry can be determined using your latest and greatest indicator or even some sort of bulls~~~, yet your profits will always be according to how the price will go and how you manage risk.

* Do not trust your broker, market maker or any of that crap, do your own research by applying simple math to historical OHLC (Open-High-Low-Close) data, look up Trend Following.

[KeymasterKeymaster]

Thank you again, Man!

If you keep doing what you've always done... you're gonna keep getting what you always got.

[Crazy CanuckMember 4215]

I am still a fan of silver. I bought silver when it was $4. The best advice for career stability… do NOT go into mgt. They all get fired off in time. Be a plumber in terms of the guy that works the profit center. They cannot fire you if you are a cash cow. Then get your own venture. I used to have a crafts venture and was making about $2k a month on the side. Long hours..but it served me for the time I needed.

 

Silver and gold isn’t really an invest, it’s more like an insurance policy.  Of course these metals have greatly increased in value.

"If pussy was a stock it would be plummeting right now because you've flooded the market with it. You're giving it away too easy." - Dave Chapelle

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