Trend-following traders prioritise aligning their strategies with the market’s direction rather than their personal biases or egos. The market operates independently of any individual’s beliefs or predictions and rewards those who adapt to its movements. By following the prevailing trend, traders capitalise on the momentum, allowing them to ride profitable waves rather than getting caught in counterproductive battles against the market’s flow. Ego-driven trading, on the other hand, often leads to idiotic decisions, such as trying to prove the market wrong.
Successful trend-followers recognise that their role is not to predict the market but to respond to it, letting the market dictate their actions. This disciplined approach fosters consistency and minimizes the emotional pitfalls that can derail a trading plan.
I will leave the following two images here for you to decide whether this trader listened to the market or their ego.
A Scottish word comes to mind … Eejit!