The Element is an excerpt from ETF Trend Following Playbook: Profiting from Trends in Bull or Bear Markets with Exchange Traded Funds (ISBN: 9780137029013) by Tom Lydon. Available in print and digital formats.
Use trend following to take the emotion out of investing–and much of the risk, too!
Risk is inherent in all corners of the market–from leveraging strategies to Treasury bonds–but a whole bunch of other elements join in to create sheer disaster from it. As an investor, however, you can minimize it. As with all things in life, you can’t control the exterior. You can only control your reaction to events and how you deal with them, which the trend following strategy sets out to do.