Trend following wisdom

[Iron]

http://trendfollowing.com/whitepaper/card.pdf

'That is really what trading is all about - probabilities. Once you GAIN CONFIDENCE, you begin to see trading for what it really is - a game of probabilities. Each trade is not that important, but the overall sequence of trades is very important. Whether the current trade is a winner or not does not matter too much. But the fact that your trading system has been back tested, and has a positive expectancy, is very important.

This means that you will be able to trade your trading system daily in much the same way a casino operates. The casino has no interest in whether a particular bet makes money or loses money for the casino. The casino only cares that, overall, in the long run, the casino will make money. You as a trader will learn confidence will learn to trade detached from the outcome of the current trade. You can be more confident in your trading when you know, you really know that over time you will make money.'