At its core, trend-following is an investment strategy that seeks to profit from markets that are showing price trends in any given direction. If prices are trending upwards, trend-following strategies will go long the market; if they are trending downwards, trend-following strategies will go short. The mechanics are a little more complicated and making a success of it comes down to things like which markets you trade, how you size your positions and how you control your risk. But that is the basic premise.

Read the article on Firstlinks

Kit Cherry

Kit Cherry is Director, Sales for Man Investments Australia, part of Man Group plc, and is based in Sydney.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.