long-term trend-following large markets

Discussion in 'Strategy Development' started by vetten, Jul 19, 2007.

  1. vetten

    vetten

    hi folks,

    most people are into playing around with stocks, but when the music stops for a few years, most of them have nothing to replace it with.

    I`m interested in looking at different markets for the long-term trends, be it global property, currencies, commodities, global stock markets and bills.

    Can anybody offer advice where to look to get more informed about these different markets?:)

    thanks
     
  2. Digs

    Digs

  3. vetten

    vetten

    thanks digs,

    any books that cover major markets trading long-term?:)
     
  4. Focus on developing guidelines whereby you feel comfortable "buying high and then selling higher" and vice versa. Don't get too hung up on knowing fundamentals.
     
  5. Let me see if I got this right... you want to be familir with other trending markets so that when US markets stop trending you have a backup?

    I don't know how much capital you have... but there are almost always industries, subindustries, etc. that trend even when broad indices are not. Then on a smaller scale, there are stocks within those industries that do the same.

    I am not saying you shouldn't look for other markets, just trying to present an easier solution in case you havn't looked.

    If we arn't trending on a longer timeline, we are always trending on a shorter one. You can always use different parameters for what a trending market looks like and adjust accordingly.

    Just some ideas...
     


  6. A few currencies have a tendency to trend well. Unlike most every other market, their breadth and depth make them untenable to the usual market manipulation.
     
  7. vetten

    vetten

    hi folks,

    thank you all for your suggestions.

    I was reading a book by Richard Farleigh "Taming the Lion" and I was very impressed. Despite the downturn in 2000/2001 he made more than 20% yoy. He is living in Monaco now with hundreds of millions of dollars. He is on the Australia rich list. He also appeared on a Britain television show for business angels.

    Yes, he talked about investing in the bigger markets when a smooth trend is forming. You can do this mechanically with very good results according to him or better still with the fundamentals as well.

    At the moment I got all my money on the Australian market.
    It is booming like crazy because China cant get enough metals.

    In a situation like this with these fundamentals Farleigh would look to invest in the Australian currency, shipping, commodities or the stock market.
    In his book in 2005 I think, he chose the currency, because that one had not gone up that much yet. Well look at the profit he would have made! And so easy to maintain an investment like that with just a glance every day.

    He gave good ways to enter, but no exits really and that is often the hardest part. Thats why I would like to read another book on this subject. Anyone knows?:)
     
  8. Way of the Turtle.
     
  9. word
     
  10. vetten

    vetten

    thanks kid,

    I must say the turtles are a bit different in that they are break-out traders and they`re hoping that a trend will follow after that.

    I would like to see a trend forming, before I jump in.

    However the management and the exits of the trades could be the same, although if I remember well, the turtles could give back a lot of their profits.

    Also the turtles were only into commodities and I would like to trade all the big markets.
    I might be better though to get books on the different markets like currencies, commodities, etc.etc
     
    #10     Jul 20, 2007