I am sure you have encountered some stocks (or any other securities) that kept going higher and higher. When you think it’s already at its peak and can’t go any higher, it continues to defy gravity and continues to climb north way beyond your imagination. This phenomenon can continue for months or even years.
That, my friend, is a trend in action.
And if you are a trend follower, you move and get into the market after it has made its direction clear, albeit still in an early phase uptrend. You only sell and get out when the trend ends.
Trend followers do not attempt to use fundamentals to enter a trade or try to predict where the price is heading. Instead, they react to what is currently happening in the market.
A simple example: There can be 101 fundamental reasons why analysts or economists think the stock market could be heading for a downturn. A trend follower simply does not care. If the price is still going up, the trend follower will continue to buy or at least hold on to their positions.