Trading Wisdom: Embrace the Trend for Trading Success!
McDonalds v’s Supersize Me
Some great advice that Gann gives us in his books is ‘Do not buck the trend!’
He tells us never to buy or sell if you’re not sure of the trend according to your charts.
This is a really big one for us at Safety in the Market – being aware of the trend and trading according to the trend is a big part of our trading methodology.
Mat Barnes, a Trainer here at Safety in the Market, put out a YouTube video back in 2018 that demonstrates this fact.
In this historical trading case study, he looked at the McDonald’s share price, and how it reacted during the cinematic release of a documentary called Supersize Me. You might be surprised to see the results! And take a look at the share price today…!
Essentially the point of the video is that you will see that there was very bad news coming out about McDonalds, but the share price just kept going up – because the trend on McDonald’s was up.
Just because good news or bad news comes out doesn’t mean that the market is necessarily going to react in the way that you think it will.
Pay attention to the trend and be very, very cautious about trying to buck it.
Never buy or sell if you’re not sure of the trend according to your charts, and that means sideways markets as well. If there’s not a clear trend, don’t buy or sell.
If you’d like to find out how you can profit from following the trend, then we can help. We’ve been teaching students since 1989 to do exactly that. Here’s a link to all the details about our Active Trader Program, which is where all of our students start.