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Felix Wintle , Tyndall
Investors are often warned against investing in something just because it has momentum behind it . However , Felix Wintle , manager of
VT Tyndall North American , says you can ’ t ignore what direction the market is moving in , especially on the way down . “ Most people will say : ‘ I ’ ve done my research ; I think it will turn the corner next month ’,” he explains . “ But your opinion isn ’ t going to change the trajectory of that stock : the market will . Prices trend . They trend up , sideways or down . And those people who say ‘ I
“ You can ’ t ignore momentum ”
want to buy something that has been beaten up at a low price because I think it ’ s going to recover ’ are starting in a very dangerous place . And loads of people do that .” Instead , Wintle would rather buy something in an uptrend , because this is the market ’ s way of saying it is pricing in a better future . “ It may sound crushingly simplistic to suggest people should only consider investing in stocks in an uptrend and actively avoid downtrends , but I think far too many people actually do the opposite ,” he adds . “ If a share price is trending – up , sideways or down – it is doing so for a reason . And yes , the trend can , and almost inevitably will , change at some point in the future .”
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