Thursday, December 24, 2009

Trend Following Systems

One of the most successful trading strategies!

If you are a trader or an investor, definitely you would dream of sound, long-term financial growth with minimum risk. Don’t just dream; let it to become true!
Start using a Trend Following System and take benefit from both sides of the stock market: the UP and DOWN.

Trend following systems are the popular trading systems which work on the market trend mechanism. They use “moving averages” or “channel breakouts” to determine the general direction of the market and to generate trade signals. These systems normally enter in the market after the trend properly establishes itself and for this reason, they miss the initial turning point, but this does not diminish their returns, as there are many “fake” turning points where the casual trader might get caught.
If there is a turn opposite to the trend, these systems either exit or wait until the turn establishes itself as a trend in the opposite direction. In case of exit, they re-enter when the trend re-establishes itself. Trend following strategies take advantage of long-term moves that play out in various markets.

Getting started with a trending system is simple and easy. Latest technologies have developed powerful systems and Internet has made them accessible from the convenience of a PC. Just login to the Internet; subscribe yourself to a system and get successful trading strategies, latest trade signals, quotes, and recommendations without spending hours on searching and analyzing the stock market. Does your current stock trading system completely guide you during your trade by suggesting when is the best time to enter or exit? What to trade? How much to risk? Those are very important questions that you should ask yourself or your trading adviser!

Trend following systems have enjoyed the success and growth over the years and it is mainly due to those traders who have had the most success with these systems.
Many famous traders like Richard Dennis, Paul Rabar, and Jerry Parker say that following a market trend is their winning trading strategy. Its reactive and systematic nature helps them to get maximum benefit from the market trend.

Richard Dennis, the father of the trend following, was one of the most successful futures speculators of all time. He started trading with an initial stock of just a few dollars and used the power of trend following systems and strategies to turn his initial investment into $300,000,000.
He trained many people for this technique and these people are the successful traders of this era.
Jerry Parker, the most successful of Richard’s students, believes that trend following with rules works. The small town person from the Lynchburg, by using the powerful trend following technique, is now the president of the Chesapeake Capital. He is making well by earning over $100 million profit.
Another popular trend follower, John W. Henry, who started with $16,000, has earned $500 millions until now.

Base your trading decisions on a diversified, long-term trend following system and enjoy the profits from the ups and downs of the stock market!

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