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Trend Following: How Great Traders Make Millions in Up or Down Markets, New Expanded Edition

ISBN: 9780131345508 | 0131345508
Edition: Revised
Format: Hardcover
Publisher: FT Press
Pub. Date: 1/1/2006

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SummaryTable of Contents
How did John W. Henry quietly become rich enough to buy the Boston Red Sox? How have traders like Keith Campbell, Bill Dunn, Jerry Parker, and Salem Abraham consistently generated immense wealth in bull and bear markets? The key is trend following -- the only strategy proven to consistently make money. Michael Covel reveals the "underground" network of little-known traders and hedge fund managers who've been following trend for decades. He introduces its fundamental concepts and techniques, showing why market prices contain all the information ... MORE
Forewordxi
Prefacexv
Acknowledgmentsxix
Part I
1(84)
... MORE
Trend Following
3(22)
The Market
3(1)
Winning and Losing
4(1)
Investor v. Trader: How Do You See the World?
5(1)
Fundamental v. Technical: What Kind of Trader Are You?
6(4)
Discretionary v. Mechanical: How Do You Decide?
10(2)
Timeless
12(3)
Has Trend Following Changed?
15(1)
Trend Following Modus Operandi: Follow Price
16(1)
Follow the Trend
17(5)
Handling Losses
22(1)
Conclusion
22(3)
Great Trend Followers
25(60)
Bill Dunn
27(14)
John W. Henry
41(13)
Ed Seykota
54(9)
Keith Campbell
63(4)
Jerry Parker
67(3)
Salem Abraham: Texas Pioneer
70(3)
Richard Dennis
73(4)
Richard Donchian
77(4)
Jesse Livermore and Dickson Watts
81(4)
Part II
85(76)
Performance Data
87(22)
Absolute Returns
88(1)
Fear of Volatility; Confusion with Risk
89(6)
Drawdowns
95(5)
Correlation
100(3)
The Zero-Sum Nature of the Markets
103(1)
George Soros Refutes Zero-Sum
104(5)
Big Events in Trend Following
109(42)
Event #1: Stock Market Bubble
112(12)
Event #2: Long Term Capital Management Collapse
124(12)
Event #3: Asian Contagion and Victor Niederhoffer
136(4)
Event #4: Barings Bank Meltdown
140(3)
Event #5: Metallgesellschaft
143(3)
Final Thoughts
146(3)
The Coming Storm
149(2)
Baseball: Thinking Outside the Batter's Box
151(10)
The Home Run
152(3)
Moneyball and Billy Beane
155(1)
John W. Henry Enters the Game
156(2)
Red Sox 2003--2004
158(3)
Part III
161(52)
Human Behavior
163(16)
Prospect Theory
164(5)
Emotional Intelligence: Daniel Goleman
169(2)
Charles Faulkner
171(1)
Ed Seykota's Trading Tribe
172(2)
Curiosity Is the Answer, Not Degrees
174(2)
Commitment to Habitual Success
176(3)
Decision-Making
179(10)
Occam's Razor
180(1)
Fast and Frugal Decision-Making
181(3)
The Innovator's Dilemma
184(1)
Process v. Outcome
185(4)
Science of Trading
189(10)
Critical Thinking
190(2)
Chaos Theory: Linear v. Nonlinear
192(4)
Compounding
196(3)
Holy Grails
199(14)
Buy-and-Hold
200(2)
The King of Buy-and-Hold: Warren Buffett
202(2)
Losers Average Losers
204(2)
Crash and Panic: Retirement Plans
206(3)
Wall Street: Analysis Paralysis
209(2)
Final Thoughts
211(2)
Part IV
213(34)
Trading Systems
215(26)
Risk, Reward, and Uncertainty
216(4)
The Five Questions for a Trading System
220(12)
Your Trading System
232(1)
Frequently Asked Questions
232(9)
Conclusion
241(6)
Slow Acceptance
242(1)
Blame Game
243(1)
Understand the Game
244(1)
Decreasing Leverage; Decrease Return
245(1)
Fortune Favors the Bold
246(1)
Afterword
247(132)
Market Wizard Larry Hite
248(2)
Inefficient Markets
250(2)
Trend Following Confusion Reigns
252(3)
Hedge Fund Hype
255(2)
Final Thoughts
257(2)
Appendices
Introduction to Appendices
259(120)
A. Fidelity Wealth-Lab Pro™
261(38)
B. Performance Guide
299(56)
C. Short-Term Trading
355(2)
D. Personality Traits of Successful Traders
357(4)
E. Trend Following Models
361(4)
F. Trading System Example from Trading Recipes
365(8)
G. Modern Portfolio Theory and Managed Futures
373(4)
H. Critical Questions for Trading Systems
377(2)
Resources379(2)
Endnotes381(24)
Bibliography405(8)
About the Author413(2)
Index415

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