The Coca-Cola Company (KO), Linkedin Corporation (LNKD): Billion-Dollar Fund Managers Swear By This Investing Method

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1. The Coca-Cola Company (NYSE:KO)

Billion-Dollar Fund Managers Swear By This Investing Method

2. Linkedin Corporation (NYSE:LNKD)

Billion-Dollar Fund Managers Swear By This Investing Method

3. PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP)

Billion-Dollar Fund Managers Swear By This Investing Method

Risks to Consider: Although a proven and highly effective investing method, trend following can also be frustrating and risky. Buying on breakouts can easily fail, as no one knows how long a trend will last. In addition, buying pullbacks from a trend also has risk since the pullback may be the start of a new trend.

Action to Take –> Locating strongly trending stocks and buying on breakouts or pullbacks is the core of trend following. Always use stops and be ready to close out a position if it goes against you. Remember, sometimes it takes several entries at a level to catch the move.

This article was originally written by David Goodboy, and posted on StreetAuthority.


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