Trend Trading Dogma, in a Nutshell.

[badcompany]

A trend is more likely to continue than not.

[Magister Ludi]

Producing noise traders helps alpha generation, at least up to Vishny limits.

[PICSIX]

Originally Posted by badcompany

A trend is more likely to continue than not.

For the average investor this is their best way to approach the markets....forget about the buy low sell high mentality. Instead, buy high and sell higher.

[badcompany]

Originally Posted by PICSIX

For the average investor this is their best way to approach the markets....forget about the buy low sell high mentality. Instead, buy high and sell higher.

Yes, high and low are relative. A stock can be at its all-time high and still be a bargain.

To define Trend Trading further, it simply means that you use price as the first sieve.

A stock is not a candidate for purchase unless it's currently outperforming the market as a whole. Once this is established, then you can look at its fundamentals.

Here's an example of a stock I current own and bought in Nov, 2013.

Note, that, at the time of purchase, the stock's ratio to market was confirming the trend.

[Robert Goren]

Dumb luck is better than smart investing.

[badcompany]

Originally Posted by Robert Goren

Dumb luck is better than smart investing.

Thank you for this contribution.

Your insights light the way.

[RaceBookJoe]

Originally Posted by badcompany

Thank you for this contribution.

Your insights light the way.

haha, absolute brilliance