Free-Reprint Article Written by: John Lohmeier See Terms of Reprint Below.
***************************************************************** * * This email is being delivered directly to members of the group: * * ReprintArticles-Paradise@yahoogroups.com * ***************************************************************** We have moved our TERMS OF REPRINT to the end of the article. Be certain to read our TERMS OF REPRINT and honor our TERMS OF REPRINT when you use this article. Thank you. This article has been distributed by: http://Article-Distribution.com Helpful Link: The Digital Millennium Copyright Act - Overview http://www.gseis.ucla.edu/iclp/dmca1.htm --------------------------------------------------------------------- Article Title: ============== The Importance of Trend Following in Stock Market Investing Article Description: ==================== What Edgar Genstein is talking about is the core of investment strategy - trend following. While he explains it in an academic sense, I prefer to be more visual. Additional Article Information: =============================== 517 Words; formatted to 65 Characters per Line Distribution Date and Time: Tue Mar 28 09:06:10 EST 2006 Written By: John Lohmeier Copyright: 2006 Contact Email: mailto:[EMAIL PROTECTED] Article URL: http://thePhantomWriters.com/free_content/d/l/importance-of-trend-following.shtml For more free-reprint articles by this Author, please visit: http://thePhantomWriters.com/free_content/d/index.shtml#John_Lohmeier --------------------------------------------------------------------- The Importance of Trend Following in Stock Market Investing Copyright © 2006 John Lohmeier Enterprise Advisory http://www.EnterpriseAdvisory.com "It is the direction of the price movement that counts. It is always probable, but never certain, that the direction of the price movement will continue. Soon after it reverses is time enough to sell. You should sell when you wish you had sold sooner, never when you think the top has arrived. That way you will never get the very best price - by hindsight your individual transactions will never look daring. But some of your profits will be large; and your losses should be quite small. That is all that is necessary for a satisfactory, enriching investment performance." What Edgar Genstein is talking about is the core of investment strategy - trend following. While he explains it in an academic sense, I prefer to be more visual. Picture a beautiful sun setting over the mountains; let's say there are three of them and one is bigger than the other two. Now pretend that you are hiking in these mountains, (not me because I am afraid of heights) and you are scaling the first one; it's not the tallest but you get to the top and the view is nice but you see the second taller mountain. You start to hike down the mountain and then jump across a ravine to the next mountain. It's a steeper climb but you get to the top. The views are stunning until clouds roll in and fog distorts your view. You see that it is clear over on the next mountain so you climb down the steep terrain and take a flying leap across to the next mountain where it is a smoother, easier climb to the top where you reach a flat area where you can get refreshed, rest, eat and prepare for the next part of your journey. This is the journey of a trend follower. You don't stay on a mountain forever, and you know that you have to go down sometimes to get to the next trend. Climbing mountains can be exciting, but trend following is a very disciplined style of unemotional investing - boring yet effective. The key with trend following is relativity to the market. You want to ride the trend to beat the market indices. If you put an absolute return goal on your stock investment performance, you will be disappointed most of the time. Following the trends will work in bull and bear markets. Neither lasts forever and the more flexible and realistic you are, the less emotion you will have to enable you to make better decisions. That's why trend following works; it eliminates the emotion in investing and creates the necessary discipline for success. When you look at a chart on the S&P 500 for the end of 2005, stocks were banging their heads on resistance at a triple top that, yes, does look like a mountain range. It held the market back but eventually broke above it in early January so a longer rally upward could be unfolding here. Watch the trend as the first quarter unfolds and follow it to improve your chances of beating the market. --------------------------------------------------------------------- John Lohmeier is President and Chief Investment Officer of Enterprise Trust Co., http://www.EnterpriseAdvisory.com, a Nevada-based trust and investment company. He employs several different quantitative long-short models that follow trends to provide market-beating performance for his clients. He can be reached at 1-877-ENTER01 (1-877-368-3701). --- END ARTICLE --- ..................................... TERMS OF REPRINT - Publication Rules (Last Updated: April 7, 2005) Our TERMS OF REPRINT are fully enforcable under the terms of: The Digital Millennium Copyright Act http://thomas.loc.gov/cgi-bin/query/z?c105:H.R.2281.ENR: ..................................... *** Digital Reprint Rights *** * If you publish this article in a website/forum/blog, You Must Set All URL's or Mailto Addresses in the body of the article AND in the Author's Resource Box as Hyperlinks (clickable links). * Links must remain in the form that we published them. Clean links should point to the Author's links without redirects having been inserted into the copy. * You are not allowed to Change or Delete any Words or Links in the Article or Resource Box. Paragraph breaks must be retained with articles. You can change where the paragraph breaks fall, but you cannot eliminate all paragraph breaks as some have chosen to do. * Email Distribution of this article Must be done through Opt-in Email Only. No Unsolicited Commercial Email. * You Are Allowed to format the layout of the article for proper display of the article in your website or in your ezine, so long as you can maintain the author's interests within the article. *** Author Notification *** We ask that you notify the author of publication of his or her work. John Lohmeier can be reached at: [EMAIL PROTECTED] *** Print Publication Reprint Rights *** If you desire to publish this article in a PRINT publication, you must contact the author directly for Print Permission at: mailto:[EMAIL PROTECTED] ..................................... If you need help converting this text article for proper hyperlinked placement in your webpage, please use this free tool: http://thephantomwriters.com/link-builder.pl ===================================================================== ABOUT THIS ARTICLE SUBMISSION http://thePhantomWriters.com is a paid article distribution service. thePhantomWriters.com and Article-Distribution.com are owned and operated by Bill Platt of Enid, Oklahoma USA. The content of this article is solely the property and opinion of its author, John Lohmeier http://www.EnterpriseAdvisory.com --------------------------------------------------------------------- XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX --------------------------------------------------------------------- THINGS TO KEEP IN MIND WHILE USING ARTICLES POSTED ON THE GROUP: 1. Print the article in its entirety. Don't make any changes in the article . 2. Print the resource box with all articles in their entirety. 3. Send the Author a copy of the reprinted article or the URL where the articles was posted. Anything short of following these three rules is a violation of the Authors Copyright. Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/ReprintArticles-Paradise/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/