[Investment Quote] "The trend is your friend" ㅡ Day 31

This content is not investment advice for any specific asset or security; it is only meant to provide psychological pointers to help cultivate an unwavering investment mindset in highly volatile markets. Wishing you successful investing. [Editor’s note]

The trend is your friend until it ends.

• Wall Street maxim -

The duration of an uptrend often lasts longer than people expect. Many investors miss out on massive gains by selling too early. But trends are not eternal; a shift can come suddenly. The essence of this maxim is that, while following the trend, you must always stay alert to signals that the trend may be ending. Shrinking trading volume, failing to break previous highs, drifting away from moving average lines, and so on are all warning signals of a trend reversal. Becoming a friend to the trend, while always being ready to part ways, is the mindset of a professional trader.

Follow the trend, but never miss the signals of a reversal.

Wall Street is located at the southern tip of Manhattan in New York, the United States, and is the center of world finance. The New York Stock Exchange, NASDAQ, and major investment banks and hedge funds are all clustered here, and “Wall Street” has become a byword for the American capital markets. The “Wall Street maxim” is the culmination of market wisdom distilled from the real-world experience of countless traders, investors, and brokers who have been active here for hundreds of years. It does not originate from any particular person; instead, it comes from the collective experience of Wall Street as a whole, containing sharp insights into both the essence of the market and human psychology.