Unlike many traders, who typically employ a passive buy and hold strategy, and only depend on rising markets for profit, Trend Followers use dynamic strategies designed to take long positions (in a rising market) or short positions (in a declining market), to profit from both.

Trend Follower View of World:

• Unstable world.
• World is uncertain and dynamic.
• Market players form rational beliefs but make mistakes.
• Learning takes time; slower adjustment to information happens.
• Fundamental changes are often unanticipated.

Non-Trend Follower View of World

• Stable world.
• World is knowable and static.
• Market players generally form rational expectations.
• Markets adjust quickly to new information.
• Fundamentals do not change dramatically in the short run.

Given the world market turmoil which view makes sense to you? Which view is real?