Wow! eBook
Trend Following (Updated Edition): Learn to Make Millions in Up or Down Markets Original Edition
Author(s): Michael Covel (Author)
- Publisher: Ft Press
- Publication Date: 15 Feb. 2009
- Edition: Original
- Language: English
- Print length: 464 pages
- ISBN-10: 013702018X
- ISBN-13: 9780137020188
Book Description
Michael Covel is the author of five books: including the international bestseller, Trend Following and his investigative narrative, The Complete TurtleTrader. Fascinated by traders that quietly generate spectacular returns, those going against the grain of investment orthodoxy, he has uncovered astonishing insights about how they think, strategize and execute their systems.
His cutting-edge and unorthodox perspectives have garnered international acclaim and have earned him invitations with: China Asset Management Co., Ltd., GIC Private Limited (Singapore sovereign wealth fund), BM&F Bovespa, Managed Funds Association, Bank of China Investment Management, Market Technicians Association. He also has the distinction of interviewing four Nobel Prize winners in economics, including Daniel Kahneman and Harry Markowitz and has been featured by major press, including: The Wall Street Journal, Bloomberg, CCTV, The Straits Times and Fox Business.
Covel’s Trend Following Podcast now has over 2.5M listens (trendfollowing.com/podcast) and has ranked as high as #2 on iTunes. He splits his time across USA and Asia and sees location independence as our future.
Editorial Reviews
Review
“Michael Covel’s Trend Following: Essential.”
--Ed Seykota, trend follower for 35 years and original Market Wizard
"For my staff, Michael Covel's Trend Following is required reading."
Larry Hite CEO, ISAM,
Originally profiled in The Market Wizards by Jack Schwager
"My favorite of the new TA [technical analysis] books is 'Trend Following' by Michael Covel. Straightforward, easy to read, this book is rich in details about why trend following is such a successful strategy amongst some of the world's best-performing hedge funds."
Barry Ritholtz, The Big Picture
“A mandatory reference for anyone serious about alternative investments.”
--Jon Sundt, president and CEO, Altergris
"I think that Michael's Trend Following is an outstanding read from which all
investors can learn to trade markets better by limiting their risks and maximizing
their profits through a more disciplined approach to investments."
Marc Faber
Managing Director, Marc Faber Limited
Editor, Gloom, Boom & Doom Report
"I think the book did a superb job of covering the philosophy and thinking behind
trend following (basically why it works). You might call it the Market Wizards of
Trend Following."
Van K. Tharp, Ph.D.
Author of Trade Your Way to Financial Freedom
"Michael Covel does an excellent job of educating his readers about the little-known
opportunities available to them through one of the proven best hedge fund
strategies. This book is like gold to any smart investor."
Christian Baha
Superfund
"Michael Covel's book is the definitive guide to trend trading. Backed by real world
results from some of the biggest and best money managers in the United States, his
book will put you on the path to successful trend trading."
Larry Connors
TradingMarkets.com
"Michael Covel's Trend Following is a breakthrough book that captures the essence
of what really makes markets tick. Diligently researched and comprehensive in
scope, it will replace Market Wizards as the must-read bible for a new generation of
traders."
Jonathan Hoenig
Fox News Contributor
"Trend Following: Definitely required reading for the aspiring trader."
David S. Druz
Tactical Investment Management
"I think that this book documents a great deal of what has made Trend Following
Managers a successful part of the money management landscape (how they manage
risk and investment psychology). It serves as a strong educational justification on
why investors should consider using Trend Following Managers as a part of an
overall portfolio strategy."
Tom Basso
Originally profiled in The New Market Wizards
From the Back Cover
Today, you need trend following more than ever. Read this bestselling book, and put it to work for you!
- Real proof, real data, real results
Includes over a decade of detailed performance charts - All the Information You Need...in One Number
Why the market price still tells you all you need to know to trade--and always will--in both bull and bear markets - Pinpointing Targets of Opportunity
What to trade, when to trade, and how much to trade - Meet Today's Leading Trend Followers
Extraordinary trader profiles, from David Harding to John W. Henry to Ed Seykota
About the Author
Discover the investment strategy that works in any market. The one strategy that works in up and down markets, good times and bad.
- ¿Trend Following¿ has become the classic trading book ¿ accepted by the great pro traders as their standard.. Learn how Trend Followers delivered fantastic returns while everyone else was losing their shirts.
-
Simple charts and instructions help you use Trend Following no matter where the market goes next.
-
Includes new profiles of top Trend Followers who¿ve kept right on profiting through the toughest markets.
Excerpt. © Reprinted by permission. All rights reserved.
Praise for Trend Following
“Michael Covel’s Trend Following: essential.”
—Ed Seykota, trend follower and original market wizard
“Trend Following by Michael Covel? I’m ‘long’ this book.”
—Bob Spear, developer of Trading Recipes Software
“Michael Covel’s Trend Following is a breakthrough book that captures the essence of what really makes markets tick. Diligently researched and comprehensive in scope, it will replace The Market Wizards as the must-read bible for a new generation of traders.”
—Jonathan Hoenig, portfolio manager, Capitalistpig Hedge
Fund LLC and Fox News contributor
“Investment books that have a lasting appeal offer insight that resonates with a large number of investors. We believe Michael Covel’s Trend Following will be such a book.”
—Richard E. Cripps, Legg Mason chief market strategist
“Please read Trend Following whether you think you have an interest in trend following or are not sure...Covel has hit a home run with it.”
—Gail Osten, editor-in-chief, Stocks,
Futures, & Options magazine
“Michael Covel has written the definitive book on trend following. With careful research and clear insight, he has captured the essence of the most successful of all trading strategies. Michael knows his subject matter and he writes about it with passion, conviction, and enthusiasm. This enjoyable and well written book is destined to become a classic.”
—Charles LeBeau, author of Technical Traders Guide to
Computer Analysis of the Futures Markets
“Trend Following is an engrossing and educational journey through the principles, pitfalls, players, and psychology of aggressive technical trading of the investment markets. It is rich in its wisdom and historical study.”
—Gerald Appel, president of Signalert Corporation and publisher
of Systems and Forecasts newsletter
“Conventional wisdom says buy low and sell high, but what do you do now that your favorite market—be it a stock, bond, or commodity—is at an all-time high or low? For a completely different perspective, from people who actually make money at this business, take a look inside. Michael Covel has written a timely and entertaining account of trend following—how it works, how to do it, and who can do it. While it’s not for everybody, it might be for you.”
—Charles Faulkner, NLP modeler and trading coach, featured in
numerous books including The New Market Wizards
“I think the book did a superb job of covering the philosophy and thinking behind trend following (basically, why it works). You might call it the Market Wizards of Trend Following.”
—Van K. Tharp, Ph.D., president, International Institute of Trading Mastery, Inc.
Van was originally profiled in The Market Wizards by Jack Schwager.
“I think that this book documents a great deal of what has made trend following managers a successful part of the money management landscape (how they manage risk and investment psychology). It serves as a strong educational justification on why investors should consider using trend following managers as a part of an overall portfolio strategy.”
—Tom Basso, retired CEO, Trendstat Capital Management, Inc. Tom was
originally profiled in The New Market Wizards by Jack Schwager.
“Michael Covel mixes a unique blend of trend following matters with the thoughts and quotes of successful traders, investors and society’s leaders. This is a valuable contribution and some of the best writing on trend following I’ve seen.”
—Robert (Bucky) Isaacson, managed money and trend
following pioneer for more than 30 years
“Trend Following: Definitely required reading for the aspiring trader.”
—David S. Druz, tactical investment management and trend follower for 25 years
“Michael Covel reveals the real secret about trading—that there is no secret. His points are peppered with wisdom from experts across the industry.”
—John Ehlers, president, MESA Software
Trend Following (Updated Edition): Learn to Make Millions in Up or Down Markets
Preface
“Men wanted for hazardous journey. Small wages. Bitter cold. Long months of complete darkness. Constant danger. Safe return doubtful. Honor and recognition in case of success.”1
This book is the result of a 14-year “hazardous journey” for the truth about trend following trading. It fills a void in a marketplace inundated with books about buying low and selling high, index investing, and all other types of fundamental analysis, but lacking any resource or, for that matter, practically any reference to what I believe is the single best strategy to consistently make money in the markets. That strategy is known as trend following. Author Van Tharp has described it succinctly:
“Let’s break down the term ‘trend following’ into its components. The first part is ‘trend.’ Every trader needs a trend to make money. If you think about it, no matter what the technique, if there is not a trend after you buy, then you will not be able to sell at higher prices ... ‘following’ is the next part of the term. We use this word because trend followers always wait for the trend to shift first, then ‘follow’ it.”2
When it is a question of money, everyone is of the same religion.
Voltaire
Trend following trading seeks to capture the majority of a market trend, up or down, for profit. It aims for profits in all major asset classes—stocks, bonds, currencies, and commodities. Unfortunately, however simple the basic concepts about trend following are, they have been widely misunderstood by the public. My desire to correct this state of affairs is what, in part, launched my research. I wanted to be as objective as possible, so I based my writing on all available data:
- Trend followers’ month-by-month performance histories
- Trend followers’ published words and comments over the last 30 years
- News accounts of financial disasters
- News accounts of the losers in those financial disasters
- Charts of markets traded by trend followers
- Charts of markets traded by losers in the financial disasters
If I could have written a book comprising only numbers, charts, and graphs of trend following performance data, I would have. However, without any explanation, few readers would have...
