#TrendTradingStrategy

Following the trend refers to a general trading methodology aimed at profiting by capturing the underlying market direction, whether bullish or bearish.

In a bullish trend, an investor will buy an asset (a stock, an ETF, a futures contract, or a cryptocurrency, for example) in an attempt to profit from rising valuations.

In a bearish trend, an experienced trader may seek short exposure - either by selling an asset short, buying an inverse ETF, or purchasing put options - in an attempt to profit from falling prices.

Since short selling and derivatives like futures and options require special account privileges and minimum capital requirements, some traders will simply close their existing long positions during a bearish trend and re-establish long positions when the next bullish trend begins.