Trend Following 101: “When You Are Caught in A Strong current, It Is Fatal to Resist”


If, when swimming, you are caught in a strong current, it is fatal to resist. You must swim with it and gradually edge to the side. One who falls from a height with stiff limbs will break them, but if he relaxes like a cat he will fall safely. A building without “give” in its structure will easily collapse in storm or earthquake, and a car without the cushioning of tires and springs will soon come apart on the road. The mind has just the same powers, for it has give and can absorb shocks like water or a cushion. But this giving way to an opposing force is not at all the same thing as running away. A body of water does not run away when you push it; it simply gives at the point of the push and encloses your hand. A shock absorber does not fall down like a bowling-pin when struck; it gives, and yet stays in the same place.

Trend following philosophy 101.

Source: Alan Watts.

One thought on “Trend Following 101: “When You Are Caught in A Strong current, It Is Fatal to Resist”

  1. Yes, you have to recognize when the trend changes, and then go with it. I play both the up and the down. I have been long the market since 2-12-14 and you can be sure that I will short it when my RIX Index issues a Sell Signal. When you have your money on the line, these decisions can be emotional, even if you have a lot of experience timing the market. Most say the market can’t be timed but they are wrong. I am currently on Timer Digest’s 3 month and 6 month Top Ten Timers Lists. Ask for a copy of my latest Newsletter. It’s free. Michael, if you every travel to Orlando, give me a call. I’d like to buy you a beer. Jim

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