The Importance Of Scalping And Trend Following

Why do you need them?

“You have to Play to win …not play to Play” “Get behind Technology so that it stops running you over you”

Prince Hunter

Trend following and Scalping are the two most commonly misunderstood of all the market strategies used to date by Novice traders, the majority of novice traders actually believe they have it the right way. Now let me explain the traditional way, we have all been groomed when it comes to investing our money in others , when you invest in any stock(company) what your actually doing is investing in that company , or Country, you see in the past people would invest in a company and the money that these individuals or a group would use to purchase that companies stock, would be used by the company to re-invest back into “their” (NOT yours) business and in turn that companies Government would give them tax credits, and tax breaks, while they continued to grow the business on “behalf of the shareholders” but as a shareholder your losing track of the fact the people making the decisions about the company you just invested your hard earned money in, are the same people that “own the majority of shares” now what I’m saying is this, if this is something your perfectly comfortable with, then by all means pursuit and pursuit well. But remember you have to have a goal, an objective, and a purpose… remember they need you more than you need them.

They would hope and pray that as an investor you would take the Rip Van Winkle approach to your position and sit back and dream about all the money you’re going to one day “wake up” to, and begin to treat your investment as a lottery ticket, that’s when you went to check the ticket 2 to 5yrs later or even ten years where you would have a “million dollars” just waiting for. You need the scalping strategy because when it comes to scalping the market, we all know that money today means more than money tomorrow. And when it comes to Wealth Trading one of the key factors with this methodology is you must approach it in the same manner that the DOW JONES is Managed and Formulated and that is, your positions (investments) must perform or suffer the consequences and be removed, remember that this style is purely about patience and capital preservation, while letting your capital work for you.

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