“I think the biggest challenge I have faced is to understand that price move in waves. Its not about being right or wrong, its about managing risk…”

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I began with day trading in a chat room (BearBullTraders). I think the biggest challenge I have faced is to understand that price move in waves. Its not about being right or wrong, its about managing risk. And after reading your book that I just finished today at work, its obvious that I was buying falling stocks and shorting strong ones. basically trading counter Trend 100% of the time.

Lately, (2 months) I switched to swing trading and I was developing my own strategy based around the Daily200SMA trying to catch the biggest chunk of the trend, back testing (looking at charts only without soft wares etc.)

Took me about 2/3rd of the book to understand that every story, quotes, or stats, or anything in the book is just to make us understand only one thing, we need to follow the trend. So I guess you received a lot of message saying there was not enough “Strategy” or indicator things in the book.

I really love the part about the 10x100sma which was basically what I was doing but with the 200sma AND I really discovered the Donchian Channels. I love that concept since it is based on actual price and not an average.

Vincent

Stay on the trend following path!

Filed under Trend Following