Price Behavior

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In this excerpt from his acclaimed book Taming The Lion, highly successful trader, investor and former hedge fund manager, Richard Farleigh, reveals some of the secret investment strategies that he developed to succeed in the markets:

"I am able to show that trends have operated across nearly all markets for a long, long time. These price trends are a gift! A market that has moved higher is more likely to continue moving higher than to suddenly reverse. The equivalent applies for a falling market. Although trends are well known in the markets, they are not used very well. However this bias can be used to make money; for years I have experienced a lot of success using simple systems which use nothing but trends, and trends can help decide the best way to time investments.
There are solid reasons why trends exist and will persist in the future. Market information spreads gradually, and the reaction is delayed by inertia and scepticism. Rising prices can actually lead to more, rather than less, buying in the market. Economic cycles also help prices move in trends. So despite the common belief, markets do not usually over-react."

Praise for Farleigh's acclaimed book, Taming the Lion:
"Anyone who was able to retire at the age of 34, move to Monte Carlo and become a private investor must have made some smart investment decisions. Richard Farleigh did just that and he's sharing his secrets in this book." Money Magazine

"Taming the Lion is a book about profiting from big themes. From humble beginnings in Australia, Farleigh made a fortune following powerful trends, the most effective and least stressful route to investment success. He knows how to write too." Telegraph

"Overall I feel there is so much information in this book, it is probably one I will keep re-reading as I make investment decisions. I especially like the way it has reminded me that there are other asset classes to invest in other than shares and property and yet the same strategies are applicable". Investors Voice