#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 exchange-traded fund, 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 short-selling an asset, buying an inverse exchange-traded fund, or purchasing put options - in an attempt to profit from falling prices.

Since short-selling and derivatives such as 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.