Trick The Tendency Next Astronaut

Of all the technical systems I've encountered, Trend Following [TF] has been the easiest to larn too master. Why? Because different other trading setups that require multiple indicators or tools, TF entirely require that you lot follow the lines. In the ZFT organization nosotros follow entirely iii lines : The 20, 50, too 100 Moving Averages.

I'm non claiming that other combinations of moving averages are inferior to ours, but most variations we've tried are but likewise fast or likewise tiresome inwards reaction fourth dimension when used inwards different fourth dimension frames hither inwards the PH market. The 20-50-100 combination has been our most balanced one. 

Not many empathise the simplicity withal effectiveness of this tool. And I gauge it's human nature - To receive got that unnecessary feeling of putting tremendous endeavor to something inwards lodge to brand the victory sweeter.

Because why stick to 1 if you lot tin receive got many right?

You Infidel.

But to those who receive got the right mindset, this tool tin practise wonders. So what are the essentials of Trend Following? 

Let's start!

Having a Trend Following Template

Not many tendency followers receive got trading templates. And past times this, I hateful different ways to merchandise stocks nether the TF category - because non all TF stocks are equal.

The primary chemical gene inwards tendency next are the commutation positions of the Moving Averages [MAs]. One must commence ask, "Which lines are showing bullishness? And are in that location whatsoever that are bullshitting me?" All other factors for your upcoming merchandise should revolve here. Should you lot purchase on the ZS too sell on the iZS? How most buying on an established AOTS formation? Would it last wise to laid your halt on the 20ma or the 50ma?

For example, if 2 stocks were inwards AOTS too assuming that both tin handgrip my intended maximum merchandise volume, I'd position to a greater extent than mass on the 1 which has broken a higher degree of resistance since that would propose a stronger trend. ATH over 52-week highs, 52-week highs over 6-month breakouts, too thence on too and thence forth.

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Anticipating vs. Reacting

Many traders but dear to anticipate movements earlier they happen. To purchase earlier the breakout too to sell earlier the breakdown. When a trader industrial plant to demo off that he bought at the lows too sold at the highs rather than demo that he followed his trading excogitation too system, that's his pride too ego talking. Because who tin consistently acquire it right every unmarried time? 

No one.

And what's the quest if all you lot practise is anticipate stock breakouts amongst your holy grail screeners but don't merchandise them?

But manifestly reacting on movements tin last as deadly. Imagine if you lot purchase every breakout without planning ahead, who knows what could compass off if the tide all of a precipitous turned against you? Trust me when I tell that you lot wouldn't desire to last over committed on a trade, experience a bull trap too receive got no cutting loss strategy.

And how most non selling at the top?

Below is a snapshot of having all my shares intact at it's peak price.

I sold all of my PRMX at an average of 3.52

Do I experience whatsoever regret of having lost those potential profits?

None.

So what if you lot didn't sell at the highs? Don't punish yourself for non existence able to command the uncontrollable. Instead, vantage yourself for next your trading plan.

Always holler back that in that location should e'er last residuum inwards anticipation too reaction.

Anticipation is existence prepared of what's most to come, but it is the reaction that makes your dreams come upwards to reality.

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Variable Change

When next trends too you lot bought a stock at a relatively depression price, don't last complacent most your trailing stops. How many times receive got you lot had a adept seat mature into wonderful newspaper profits entirely to acquire eaten a few days later on but because you lot failed to accommodate your stops? 

"Okay lang. Mababa naman kuha ko."

Many autumn into this pit of carelessness but because they bought at the lows. I cannot stress this enough, e'er delineate concern human relationship for variable change.

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Post Selling Evaluation

Have I followed the system? Was my mass resources allotment correct?

How tin I improve inwards next trends?

These are of import questions every trader should inquire after completing a [TF] trade. I personally receive got a 1 or 2 solar daytime trading-break after selling a large seat to brand certain no lingering emotions remain. One of the worst things that could compass off to a trader is to give dorsum to Ms Market all your difficult earned profits because of the Superman Syndrome - thinking you're invincible after having experienced a winning streak or a large win.  

Post merchandise evaluation too analysis gives you lot a measurement dorsum too receive got a adept await at the large picture. It non entirely helps you lot reckon the flaws inwards your organization too how you lot tin improve on your adjacent trade, but also gives you lot that needed "space" to think too digest what you've learned too croak a ameliorate trader as far as mindset is concerned.

Tag minute yung BF/GF minute na naging astronaut. 



-FIN

PS. Let me know your thoughts on the comments below.