Members
now you all are familiar with my reports of "Reference Levels For Stock Futures"
i have today given book profit in one of my open position of Asian Paints Fu
on 28 march buy triggered at 3190 and today risk management signal to book profit at 3690 after touching 3787
a clear 15.68% profit
while in the same time nifty has fallen from 5197 to 4852 the fall of 6.64%
this clearly indicates that trend following works in any market conditions the important thing is that choosing the stock-keeping stop loss and riding the stock until it says otherwise……….
Just read Below article that what Mar Faber Says about Trend Following
Today, government regulations and fiscal and monetary policies are badly distorting financial markets. Covel accurately explains why, in this 'manipulated' financial environment, you should never expect markets to move as you wish or expect. Rather, disregard your fundamental beliefs and simply follow the trend. Highly recommended!
As a contrarian investor I have been skeptical by default of trend following models. Still, after reading Michael Covel's excellent and eye opening book about some professional traders, who with iron discipline follow market trends up and down and in the process achieve impressive capital gains, I find myself more inclined to endorse a trend following approach to investments. In fact, I wished that at times I would have had the kind of discipline the trend followers have in terms of entirely reversing their investment positions once the trend dictated such a posture. I think that Michael's Trend Following is an outstanding read from which all investors can learn to trade markets better by limiting their risks and maximizing their profits through a more disciplined approach to investments.
