Trend following
Technical analysisA strategy that buys strength and sells weakness, accepting many small losses for a few large gains.
In plain terms
Wins a minority of its trades by design. Judging it on hit rate guarantees you will abandon it.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Profit taking
Technical analysisClosing all or part of a winning position.
In plain terms
Fixed targets cap exactly the large winners trend following depends on. Choose deliberately.