Following the Herd is the best way to make money

Came across this article, the research is based on stocks, but still interesting and relevant to Forex.

Excerpt.
When minds think alike great things can happen, even if the minds themselves are not so great. Stock day traders who act in sync — no matter the stock, or whether they are buying or selling — make more money at the end of the day than their out-of-sync peers, reports an analysis to appear in the Proceedings of the National Academy of Sciences.

Jumping On The Bandwagon Brings Rewards - Science News

Yeah, academics have actually admitted (somewhat reluctantly it seems) that momentum trading/investing can actually work.

Interesting piece, thank you for posting it.

Yes interesting, but it don’t really say that much does it? Anyway isn’t there gonna be two herds? A winning herd and a losing herd?

It is coming at it from a scientific perspective, rather than a straight trading perspective, the author will not have been a specialist and will have had a pretty savage word limit, so I am just glad to see trading mentioned in a positive light for once.

And noone cares about the losing herd, they just care about getting into the winning herd…!

There need not be a losing herd. Depends on the market. For example, in a straight asset market like stocks there’s mostly not a short on the other side of a long position, so nobody’s losing if the market is trending higher.

oh now temp, there cant be a winning herd if there isn’t a losing herd. Where would we be without the losers? lol, right where we started.

Yep. Trading is the one time where you WANT to be part of the sheeple ( hahah sheep people…I think Im funny :wink: )

I agree with you, I just think that we will most of us skip over thoughts of the losing herd and think about ourselves being in the winning herd. Positive visualization and all that!

Temp

You definitely want to follow the ‘momentum of the herd’ aka the trend. But you also want to make sure you get in at better prices than the rest of herd. You also want to know when the momentum of the herd is stalling out so you can take profits at better locations that the rest of the herd that thinks price will continue going wherever it is going forever.

Hi, friends
Recommend a good and successful strategy Forex trading?