This is a guest post from Raj Patel, @LucidTrend. You can see more of his work at www.Lucid-Trend.com
What is the value of a weather report?
We watch weather reports for two reasons:
First, we can plan ahead and use our time wisely. You don’t want to plan a trip to the beach if there is a high probability that it’s going to rain, or if it’s going to be 40 degrees outside.
Second, using what we’ve learned, we plan and pack accordingly. Will we need an umbrella, ice scraper, sunscreen, or a Winter coat? We’re effectively preparing ourselves for potential outcomes based on current trends. However, we hardly sit by the window and watch nature unfold minute by minute.
This is the core of Lucid-Trend’s approach to investing.
A good sailor adjusts his sails to catch the wind and travel in the path of least resistance. You don’t have to be a weatherman to know which way the wind blows, and you don’t need a weatherman to tell you it’s raining when you can walk outside and get wet. Likewise, you will know that you are fighting a trend in the market because you will lose money over and over again.
A good weatherman can tell you the probabilities of needing an umbrella, because rather than predicting, he is calculating the odds based on science. We identify the current market trend by price action and translate that price action into actionable methods. Therefore, you don’t have to watch each tick of the price action and become emotionally attached to the market in order to invest and prosper. Our website tools identify the current market price trend and tell you how to follow that trend until the end, when it bends.
For more trend following lessons check out: www.Lucid-Trend.com