Many have heard of the Turtle traders or trend following, in this video Vince Stanzione explains more about how he follows trends and is able to make money in up and down markets. Vince shows clear examples taken from his Making Money from Financial Spread Trading 2013 course DVDs.
Trend following is an investment or trading strategy which takes advantage of longer term rising or falling prices (short trading). Traders who employ a trend following strategy do not aim to forecast or predict specific price levels; they simply get on the trend and ride it until at some stage that trend starts to reverse. A market “trend” is a tendency of a financial market price to move in a particular direction over time. It can sometimes we call momentum trading.
If there is a turn contrary to the trend, we exit and wait until the turn establishes itself as a trend in the opposite direction. Trend following can be used by smaller traders using Exchange Traded Funds, Financial Spread Betting, CFDs and FX accounts.
Whilst Trend following tends to be associated with the commodities market the system can be used on shares, Fx, Stock indices and commodities. Trend following is ideal for those that don’t want to be watching prices all day. To learn more about Trend following and how Vince Stanzione trades and profits in rising and falling markets go to www.winonmarkets.net