Personal Finance
How to Choose a Trend-Following System
11/10/06 - 03:36 PM EST
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As you consider your options, see what value-added services the various systems provide. I think one of the most important is investor education. Invariably, an educated investor makes better choices. If you are not typically highly disciplined, you might want to find a system that will do the trading for you. Some people find it's just too hard to follow through on the buy and sell signals issued. They just can't help second-guessing the system because at times it seems so counterintuitive. In that case, it may be better to simply close your eyes, tune out the noise and have the service make your trades for you. At the end of the day, with careful research and evaluation, you can find a trend-following system that suits your investment style and -- like the Chocolate Factory -- provides you with sweet returns.The trend-follower says to pay attention to company size and location.
This trend-follower says technical analysis is the best way to go.
Bull market or bear market, trend investors enjoy the ups and downs and respond accordingly.
The goal isn't about being right. It's about making money.
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