Waiting for trends to form before making a move? Spend the time to plan ahead instead.
Buying stocks at the right time (otherwise known as timing the market) is arguable difficult or impossible to do therefore some people resort to following trends. In some sense, trend following is akin to making a bet if you do not understand the reason behind the supposed trend. That said, in some cases, following the trend can result in making a profit hence it has been highly debatable whether it is advisable to do so. In this post, we will be finding out the impact of entering the market as a follower as compared to someone who has bought the stock before an apparent trend is spotted. More importantly, we would also like to emphasize the importance of doing advanced planning and making informed choices when investing to minimize losses and maximizing gains.
