Basic Trend Following Philosophy

[Leth]

Easy to understand, yet hard to follow..

1. Cut losses
2. Ride winners
3. Trade with the trend
4. Keep your bets small
5. Repeat steps 1 - 5
6. The future does not exist; therefore, it can not be predicted
7. The past is before now; therefore, all we can do is learn from it
8. We only live in the now; therefore, all we can do is react
9. There is no such thing as a perfect trade-off
10. Nothing in life changes but change itself

Numbers 1 - 4 are as old as the hills; I added 5-10 as part of my own observations which are probably just as old.