Trading
Mean reversion and momentum
By Dr Wealth  •  August 21, 2012
Lex I: Corpus omne perseverare in statu suo quiescendi vel movendi uniformiter in directum, nisi quatenus a viribus impressis cogitur statum illum mutare.
Translation…
Law I: Every body persists in its state of being at rest or of moving uniformly straight forward, except insofar as it is compelled to change its state by force impressed. ~ Sir Isaac Newton
I have always adhered to the trading mantra – follow the trend and do not try to fight it. All the trading courses that I have attended taught me trend following strategies. So it was quite ingrained in me that to make money in the market, I need to be on the right direction and then capture the price movement as much as possible. The central idea of trend following is that price has momentum – what goes up, continues to go up; and what goes down, continues to go down. ......
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By Dr Wealth
Dr Wealth provides trusted financial education to individuals. We teach researched and actionable investment methods so that our graduates are successful in their investment journey and achieve market-beating returns.
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