Trend Traders Whip It

These days many people cringe when the Dow is down hard as they are only “long only” and are stuck with no knowledge of what other steps they can take. The nightly news programs then reinforce the end of the financial world offering solutions like “stay the course and hang in there” (while some of these people go broke). But some people are making money. For example, David Harding’s Winton Capital is up +18% so far in 2008. Bill Dunn’s Dunn Capital is up +37% so far in 2008. Christian Baha’s Superfund is up +31% so far in 2008. Salem Abraham’s Abraham Trading is up +14% so far in 2008. Those are but a few examples of traders doing well. And by and large those traders are all trading trend following strategies.

5 thoughts on “Trend Traders Whip It

  1. I found those “experts” showing on media very disgusting when they show up in front of crowd telling people “the bottom is near” or “a rebound will occur”. They appear to be so “informed”, that it seems that God just told him last night that this “insider information” and urging others to buy when the market is dumping the stocks out. When I look at the Dow chart, I clearly see that price goes lower and lower. No one knows where is the bottom. No one knows which stock will be the next Bear Stern. The only reliable trading signal is the price itself.

  2. As a recent investor looking at small caps, micro caps, and, yes, the indexes, I’m overwhelmed with the “latest and greatest” way to make huge profits, blah-blah.
    The TURTLE TRADER is the first book I ever read on the stock market. It gave me a needed perspective into what works and what doesn’t.
    To paraphrase the politicos: It’s the exit, stupid. And, the price of the stock itself is the key to look at.
    I’m saving thousands in not falling for the nonsense packed into a majority of the newsletters. The cost of the above-named book and the book TREND FOLLOWING is all I ever need. Thank you, Michael.

  3. I had a dialogue with one of the fundamental analysts at the brokerage i work with and she asked me what i thought of the stock market. i said for trendfollowers the dow has been a clear short for the past month, so my current bias is short. she asked where i thought it was going. i said it was her job to make predictions im more interested in the present. she asked what does the present tell me about the future. i said it tells me nothing. she then asked how i knew to stay short. i said because i dont get out of my position based on what i think might happen, my exit strategy is a response based on what actually does happen. you could see her eyes light up a bit, but her job is to spend all day creating scenarios and selling them to clients. she doesnt get paid to trade, but i beleive she’s coming around to the idea that trading does not need to take hours and hours of reasearch to arrive at the next best idea, but can be focused on a rules based entry, exit and risk management process.

    thanks, as always for creating the worlds best source for trading related information and discussion.

  4. There are always small group of traders who took advantage when majority of traders were making fools out of themselves. Interesting, but true; trend traders simply are fantastic!

  5. While I’m sold on the general idea of trend trading, it seems it would be a good idea to work with a mentor, as I did to become an expert in my own profession.
    Does anyone have any advice on how I might find a mentor??

    I realize I can pay for information — I can buy the turtle trading course with the CD’s; but even the turtles had a mentor — that, I believe, gave them a huge edge.

    I’d appreciate any thoughts on this topic, or even advice on where to better ask such a question.

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