Trend following

Trend following is like when you're playing a game with your friends and you notice that everyone is doing the same thing. You want to be a part of the game too, so you follow along with what everyone else is doing.

In the grown-up world, it means that some people like to invest in things that are popular and seem to be going up in value. They do this by watching the prices of things like stocks, bonds, and commodities (like gold or oil).

If the price of something is going up, these people will buy it too, because they think it will keep going up and they can make money selling it later. This is like jumping into a game because everyone is having fun and you want to have fun too.

But if the price of something starts going down, these people will sell it, because they think it will keep going down and they don't want to lose money. This is like stopping playing the game when it's not fun anymore, because you don't want to be the only one still playing.

Trend following can be a good way to invest money, but it's not foolproof. Sometimes the prices of things don't follow trends and can be unpredictable, so it's important to do research and be careful with your investments.