ON 3RD FEBRUARY THE UPPER CHANNEL LINE STARTED TO LEVEL OUT WHICH NORMALLY BUT NOT ALWAYS INDICATES THAT THE PRICE MAY BE MOVING SIDEWAY AT LEAST FOR A DAY OR TWO BUT IN THIS CASE, HARTA GAINED 33SEN YESTERDAY AND 11 SEN TODAY. THIS SHOWS THAT TO BE SUCCESSFUL WE HAVE TO BE DISCIPLINED. IF THE PRICE DON'T CLOSE BELOW THE LOWER CHANNEL LINE WE SHOULD HOLD ON TO OUR POSITION. ACCODINGLY TO CURTIS FAITH IN HIS BOOK "THE WAY OF THE TURTLE", "TREND FOLLOWING GENERATES EXCELLENT RETURNS AND HAS DONE SO CONSISTENTLY FOR AS LONG AS ANYONE HAS TRADED FUTURES CONTRACTS, BUT IT IS NOT AN EASY STRATEGY FOR MOST PEOPLE TO FOLLOW FOR SEVERAL REASONS." HE THEN WENT ON TO MENTION THAT LARGE TRENDS OCCUR FAIRLY INFREQUENTLY, THAT IN ADDITION TO LOSING MONEY WHEN THERE ARE NO TRENDS, TREND FOLLOWING SYSTEMS LOSE WHEN TRENDS REVERSE AND TREND FOLLOWING REQUIRE A RELATIVELY LARGE AMOUNT OF MONEY TO TRADE USING REASONABLE RISK LIMITS BECAUSE OF THE LARGE DISTANCE BETWEEN THE ENTRY PRICE AND THE STOP LOSS AT WHICH ONE WOULD EXIT IF THE TRADE DID NOT WORK OUT.
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