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If You’re Cautious, Investment Tend Following Can’t Be Beat by Tom Lydon

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If You’re Cautious, Investment Trend Following Can’t Be Beat

Tom Lydon

The easiest way to explain trend following is to explain what it’s not. It’s not buying at the bottom, and it’s not selling at the top. If you’re following trends, you won’t be able to do that.

Trend following is a discipline that’s simple for any investor to follow. If you follow it as you should, you’ll get the lion’s share of any long-term uptrend—and you’ll also avoid the lion’s share of a long-term downtrend.

When a sector is hot, it’s usually because investors have already made big gains. People are talking about it—they’re getting in and telling you to join them. It’s hard to fight the enthusiasm. But you should resist the temptation to jump on the bandwagon. If a stock ...

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