Using the George S. Patton Method to Predict the Stock Market
“Lead me, follow me, or get out of my way.”
It’s almost as if this iconic quote from General George S. Patton Jr. was speaking directly to different stock trading strategies, specifically trend trading. Trend trading is often seen as reactive and systematic by nature. The word “follow” is inexorably intertwined to this method (trend following) as most strategies involve joining the trend after it’s started. These words might as well represent 3 totally different trading strategies. We’ll examine each and let you know how you can apply one of them in order to better predict the stock market and make profitable trades.
“Follow Me” – Reactive Stock Trading
Herein lies the problem of trend following stocks. All too often, traders are too late to the party and miss the bulk of the move. Did you miss the recent trending moves in Starbucks ($SBUX), Google ($GOOG$) or Netflix ($NFLX)?
Many traders did because they are using the “follow me” approach that involves lagging indicators. Their stock predictions are reactive – they study a chart on Tuesday night, look at a moving average and see that a particular stock they follow has been trending up or down. Because they are dealing with lagging indicators that involve past price history for that stock, they enter the trend too late and miss the “meat” of the move.
“Get out of my way” – Trading from the Sidelines
Upon further inspection of that same stock, followers find that the trend actually started a week ago and they are too paralyzed to enter the trade. They will inevitably take the “get out of my way” route. Their stock predictions were directionally correct but their entry timing was off, so they inevitably missed a profitable trading opportunity out of fear that the trend is over.
It’s easy to see that there’s no way to get ahead of the market if you are constantly playing catch up or sitting on the sidelines. Instead, let’s look at ways to predict the stock market using trend forecasting technology.
What if you could approach your stock trading from a “lead me” perspective?
“Lead me”- Trend Forecasting Stocks
Traders who have accurate information ahead of the market can enter and exit positions before major trend reversals with a high level of confidence. VantagePoint is a trend forecasting software that uses predictive indications to give traders a look into a stock’s future. Through global market analysis and neural network technology, VantagePoint software transforms market lagging indicators in market leading indicators that anticipate trend changes and forecast the short term future trend direction, market strength and daily trading ranges days in advance.
In order to adapt the “lead me” style, and get on board a trend early, you’ve got to be able to anticipate, instead of react, to trend changes. Frequently, VantagePoint’s predictive indicators will flash an “early warning” – that a stock’s trend is about to change direction before it actually happens. This is the edge that traders truly need to preserve capital and grow wealth in today’s volatile markets.
Are you ready to adapt the George S Patton method and become a “lead me” type of trader who can predict the stock market?