Connect with us

Hi, what are you looking for?


Mastering Money Management: The Groovy Guide to ‘Dancing with the Trend’ – Part 7!

Rules-Based Money Management, a practice that fosters disciplined and strategic investment actions, boasts a wide array of models. One model that has captivated the attention of many investors is the Dancing with the Trend model. This strategy, often integral to technical analysis, is predicated on the fundamental philosophy of acting in harmony with prevailing market trends.

There are overarching principles underpinning the Dancing with the Trend model. This model suggests that the magnitude and durability of the market’s trend, be it up or down, can lead to profitable investments when correctly discerned and acted upon. Embodying this approach means that investors anticipate the market’s direction and align their investments in consonance with the discerned trend.

Understandably, the Dancing with the Trend model requires considerable discretion when it comes to picking investments. An investor needs to keep a close watch on financial markets, industry trends, and economic indicators that could potentially allude to upswings or downturns. Timely recognition of a nascent trend can help investors enter the market at an opportune time, boosting their chances of securing substantial returns.

Equally important to note is that the Dancing with the Trend model is, by design, more active than many other Rules-Based Money Management strategies. That is because this model frequently prompts portfolio adjustments to align with the market’s movement. Being receptive and adaptable to the ebb and flow of the market is absolutely essential. Therefore, the Dancing with the Trend model is ideally suited for investors who are capable of reacting promptly to market fluctuations.

The use of technical analysis is a pivotal part of the Dancing with the Trend model. Technical analysis involves research and examination of past and present market data, including price and volume. It equips an investor with insightful predictions about future movements in the financial markets. One aspect of technical analysis that aids in this model is understanding market indicators and charts, which signal existing trends and potential reversals.

The employment of stop-loss orders plays a substantial role in the Dancing with the Trend model. Stop-loss orders automatically sell a security when it reaches a specified price. When an investor recognises a market trend turning against their holdings, a stop-loss order can mitigate the potential losses by triggering an automatic sale. Utilising this financial tool serves as a safety net, which aligns perfectly with the risk management ethos of the Rules-Based Money Management.

Despite the advantages, it’s necessary to

Enter Your Information Below To Receive Latest News, And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Getchell Gold Corp, a junior miner exploring gold mining in Nevada, has just initiated trading on the Frankfurt Exchange under the symbol GGA1. Getchell...


    With government issues, i.e. bonds, it is essential to consider the “long term trend” in order to get the most benefit and create wealth...

    Latest News

    France has announced the release of François Santoni, a French official that had been held by Niger security forces since July 7. The French...


    Exploration results from the latest Bigfoot Drilling Program at the Tatiggaq Project in Canada’s Thelon Basin, Yukon-Northwest Territories region have demonstrated that the uranium...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023