Chapter 8The Trend Is Your Friend
“When in doubt, predict that the present trend will continue.”
—Anonymous
“History doesn’t repeat itself, but it does rhyme.”
—Mark Twain
The title of this chapter might rhyme and sound clever, but don’t underestimate it. When talking about successful trading, these words are some of the most profound around.
A successful trader once told me, “If you can correctly determine the trend of a market, you will make money.” Although this might sound like a simple concept, it’s not easy to accomplish in the real world.
The reason you’ll make money when you correctly identify the trend is that the odds favor your position, showing a profit in short order. Even if your timing is initially off, if you have correctly ...
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