Why Trend?

Why do markets trend:

“Whether it’s because of gradual dispersions of data, participants’ interpretation of data, fundamental factors or seasonal factors, historically, markets trend,” says Bruno. “You can get the edge if you approach them with a systematic, disciplined trend-following methodology and, over time, extract consistent profits from them in either direction.”
Thomas Bruno

But once you believe in “trends”, adopting the trading philosophy is next:

“When the firm’s computer programs identify that a trend has begun, Campbell’s traders will “join that trend and, at the same time, determine a point where we will exit if we are incorrect,” says Little. If the trend continues, these traders will follow with a trailing stop. Little adds that they do not automatically reverse, and will often have no positions in trendless markets.”
Managed Account Reports

You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content.