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Investment
Trend Following
A strategy that tries to identify the current market direction and ride it for as long as possible.
Trend following has made some of the biggest fortunes in trading history (think of famous commodity traders). It accepts many small losses while waiting for the occasional huge winning trade that pays for everything.
It's going with the flow of the river instead of fighting against it.
Real world: When a stock makes higher highs and higher lows, trend followers buy and hold until the trend breaks. They use moving averages or price channels to stay in the trade as long as the trend remains intact.
💡 The trend is your friend — until it ends.