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Fundamentalists typically feel their analytics eventually control events. Trend Followers are content to submit to the flow of events Stampede! Trend Followers don't stick around to convince Mr. Elephant that he is supposed to be somewhere else.
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The Positive Intention of Fear is risk control.
Your experience of collapse may depend on your position.
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To get off the hook, go with the flow. |
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These days people are showing a lot of concern that markets are different and trend following methods no longer work. I recall, in the old days, people showing a lot of concern that markets are different and trend following methods no longer work.
January, 1900 Pronouncement: The Markets Seem Different Now.....
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Not using stop losses is like.......
Sure thing, no worries, Of course I'll take good care of the chickens for you.
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Risking 100% on a trade and watching it closely, can have all kinds of interesting side effects.
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Carrying a heavily complicated system around with you, can lead to interesting drama. |
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The Plover
Lives on pieces of food and leeches he finds in the mouths of crocodiles.
Good legs are helpful in this line of work. |
The Crocodile allows the Plover to enter its mouth and take bits of food. The Plover gets a free meal and the Crocodile gets clean teeth and gums.
The Trend Trader allows scalpers to take a few points here and there, against the day when he just wants to keep buying and buying and buying ... and the scalpers get to experience drinking out of a fire hose at close range.
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Fundamentalists know when to catch a falling knife.
Answer: When it's cheap
So do trend traders.
Answer: When it stops falling
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As trading frequency increases, the profit potential per trade decreases, while the transaction costs remain the same.
High-Frequency Roll-Off
Occurs in stereo speakers and in trading systems.
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Computers are particularly useful for scanning lots of stocks and finding the ones that are trending.
Colander
It lets the water pass through and catches the pasta.
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