The Trend Is Your Friend Till It Isn't

Following stock market trends seems like a good idea, but it usually ends up costing investors money.
The hot hand sometimes stays hot. 

One time a very smart guy told me that the only stock he was really willing to make big bets on was Apple Inc. When I asked him why, he chuckled and said "It goes up!" That was in September 2012. The idea that a stock "goes up," like some law of nature, is an example of a very important behavioral bias: trend-following.

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