Following the herd cam be a killer to your portfolio when everyone is on the same side of the trade and sentiment is unanimous about direction. It might be possible to ride a trend for a short period of time and make some profits, but most people will get greedy and let it ride because they do not see the writing on the wall.
Trust me, trends always change direction. and you want to be ahead of the curve and be prepared for the change. Most of big profits happen when the trend changes and you are properly invested for the 5-7 days when the biggest swing happens, In fact, you can safely be in cash most of the time, and only invest for the few days after sentiment hits a peak or valley.
Based on my assessment of the HUI index, you can see that my two key indicators have flipped, and we appear to be at the tipping point for initiating a successful short trade in the miners right now, The indicator (PSAR) has flipped, and the Curve ( LRC ) has peaked and has started rolling over. Additionally, the 5-10 day MA's are also confirming a trend shift.