Is friendship with the trend suitable for you?

...continued from yesterday...

Continuation of discussion about Mechanical Trading Systems: Pairing Trader Psychology with Technical Analysis (Wiley Trading)

According to the author, Richard L. Weissman, you can trade with the trade or trade against the trend and make money either way. Some personalities are more suited to trend trading and other personalities are more suited to counter-trend trading.

You would find trend trading a good fit if you:

 Enjoy buying recent highs and selling recent lows;
 Don’t mind giving back a significant portion of unrealized gains when exiting a trade;
 Can tolerate numerous, consecutive small losses.
 Are humble enough to trade small positions so that you can survive drawdowns;
 Enjoy having between 1 to 5 percent of your trades account for your profits;
 Are willing to stay with an open position for weeks or months; and
 Are comfortable with a slow, analytical process.

...continued tomorrow...

Copyright 2008 Raymond T. Lee. All rights reserved.
Leisurely e-Mini Futures Trading
eMail me Comments