“Take calculated risks, that is quite differentfrom being rash”George Patton Following the trend is an acceptedway of making money from trading. Trends persist and if we can lock into and hold them they can yield us great long-term prots. There is however, a lot of money to be made by spotting trend changes. It is at these turning points where we can trade with the best risk / rewards. Spotting them is easy when you know what to look for. The key to spotting these trend changes
is the reaction of traders themselves. Contrary Trading is based upon a constantly
recurring phenomenon, which has remained constant for thousands of years
- Human Nature. All you need to do is to study the response of traders to price action. You can then be trading in the opposite direction to the uninformed herd and know that you have a high probability of being right. You now have the opportunity of joining the minority of informed traders who make substantial prots from trend changes.
