Article by: Yogesh Chandarana
Three Trading Resolutions for 2013
"...THE TREND IS STILL YOUR FRIEND
At times, the performance of equities can be detached from economic reality. But hedge fund manager Lex van Dam of Hampstead Capital says that you should still keep an eye on the real economy.
Given that the FTSE 100 is internationally focused, you could look to the FTSE 250 – which comfortably outperformed the FTSE 100 in 2012 – to find companies that are more in tune with the UK’s economic fundamentals.
However, the last couple of years have been characterised by risk-on/risk-off trading conditions, and you should keep an eye on where the money is actually flowing. Monitoring momentum indicators can help you to gauge this. As van Dam reminds us, “remember, the trend is your friend, and that won’t be any different in 2013”.
FORTUNE FAVOURS THE BRAVE..."
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