The Valeant Disaster And Why I Switched To Trend Following

Valeant Pharmaceuticals is a great example of why I switched my trading philosophy to trend following from an approach that more heavily used fundamental analysis. I’ve found over the years that big problems in either an individual stock or and index of stocks are hard to diagnose and determine the best course of action using pure fundamental analysis. Often you find that buying a dip in an emerging bear market can lead to disaster and big losses. Trend following using Stage Analysis provides simple rules that can be followed to avoid big downtrends whether they are in an individual stock or an index of stocks.