The best way to make money – bet against the crowd

One of the oldest mantras in trading is: 'Let the trend be your friend'. In other words, trade with the prevailing main trend, and never against it. Like all rules, this one is made to be broken – but only if you know what you're doing.

One of the oldest mantras in trading is: 'Let the trend be your friend'. In other words, trade with the prevailing main trend, and never against it. Like all rules, this one is made to be broken but only if you know what you're doing.

A glance at any price chart will reveal points where the market suddenly reverses trend and takes off in the other direction. If you are trading with the trend, this can be nasty which is one reason whymoney management discipline is so important.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.