Trend Following
Trend following is an investment strategy that aims to capitalize on the momentum of market movements. Traders using this approach buy assets that are rising in price and sell those that are falling, believing that these trends will continue. This strategy can be applied to various markets, including stocks, commodities, and currencies.
The key to successful trend following is identifying and riding the trend for as long as possible. Traders often use technical analysis tools, such as moving averages and trend lines, to help determine the direction of the market. Notable trend followers include Richard Dennis and Bill Eckhardt, who popularized this strategy in the 1980s.