Mean Reversion trading is one of the oldest and most popular strategies used by investors and traders alike. It is based on the idea that markets move in cycles, and that prices that have gone too far up or down will eventually return back to their average price. Since the early 20th century traders have been utilizing this method to make profits from short and mid-term trading. The first step in putting a mean reversion strategy into practice is to identify the trend in the market. Generally, this means looking for the market to be either in an uptrend or a downtrend. If the trend is an uptrend, then the trader should look to enter a trade on a pullback or retracement. If the trend is a downtrend, then the trader should look to go long on a bounce or a rally. Once the trend is identified, the trader should then begin to research what the average price of the asset is. This can be done through technical analysis, which means taking a look at charts with various indicators to determine what the average price is for the particular asset. Once the average price is determined, the trader can set a stop loss or a target in order to protect their capital as well as set a profit goal. The next step in putting a mean reversion strategy into practice is to monitor the market for any signs that prices are diverging from the average. When prices deviate from the average for an extended period of time, it is an indication that the trend is about to reverse. When this happens, the trader can then enter a trade in order to capitalize on the reversal. It is important to remember that mean reversion trading is a risky strategy and should only be used by experienced investors. It takes a great deal of skill and knowledge to be able to identify the right entry points and exit points in order to make a profit. In addition, it is important to realize that the market can move quickly and unpredictably, so it is important to be aware of the risks associated with this type of trading. Mean reversion strategies can be a great way to make money from short and mid-term trading if done correctly. With that being said, it is important to always do your due diligence and ensure that you understand all aspects of the market before entering into a trade. Investing can be a great way to make money, but it is important to always remember that the markets can be unpredictable and volatile.