[Follow The Trend]

Ezduzzit

You have brought up a very interesting subject i.e. the use of software to spot trends, trading signals, etc.

This type of investment strategy can be self feeding, in that if enough major players in the market are using a particular software program, there is the potential for a big herd to chase a stock higher.

The downside to this type of trading is when the trend turns - if you are not quick enough, there is a big danger of being left behind, and seeing any profit reduce or disappear.