9780136137184

Michael Covel reveals the "underground" network of little-known traders and hedge fund managers who've been using trend following for decades. He introduces its fundamental concepts and techniques, showing why market prices contain all the information investors need, and how to understand price movements well enough to profit from them. Using 100 pages of easy-to-understand charts from top trend followers, Covel proves the strategy works - and shows why only a technical system based on following price trends can win over the long term. Covel presents more than a decade's worth of data: information you'd otherwise pay a fortune to see presented this clearly. He also shows even more backtested trend following results, so you can gain even greater confidence in the method. Along the way, Covel thoroughly debunks misinformation and failed advice from pros who ought to know better. This timely book capitalizes on today's intense volatility and uncertainty to give investors what they're desperately searching for: a strategy that really works.

Foreword	p. x
Foreword	p. xiii
Preface	p. xvii
Acknowledgments	p. xxi
	p. 1
Trend Following	p. 3
Great Trend Followers	p. 25
	p. 2
Performance Data	p. 87
Big Events in Trend Following	p. 109
Baseball: Thinking Outside the Batter's Box	p. 151
	p. 3
Human behavior	p. 163
Decision-Making	p. 179
Science of Trading	p. 189
Holy Grails	p. 199
	p. 4
Trading Systems	p. 215
Conclusion / Afterword	p. 241
Introduction to Appendices	p. 259
Fidelity Wealth-Lab Pro	p. 261
Performance Guide	p. 299
Short-Term Trading	p. 355
Personality Traits of Successful Traders	p. 357
Trend Following Models	p. 361
Trading System Example from Trading Recipes	p. 365
Modern Portfolio Theory and Managed Futures	p. 373
Critical Questions for Trading Systems	p. 377
Resources	p. 379
Endnotes	p. 381
Bibliography	p. 405
About the Author	p. 413
Index	p. 415
Table of Contents provided by Publisher. All Rights Reserved.

What is included with this book?

The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.

The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.

Preface 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 an eight-year "hazardous journey" for the truth about Trend Following. It fills a void in a marketplace inundated with books about finance and trading but lacking any resource or, for that matter, practically any reference to what we believe is the best strategy to consistently make money in the markets. That strategy is known as Trend Following: When it is a question of money, everyone is of the same religion. Voltaire "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 Trend Following seeks to capture the majority of a trend, up or down, for profit. It trades for profits in the major asset classes--stocks, bonds, currencies, and commodities. However simple the basic concepts about Trend Following are, they have been widely misunderstood. Our desire to correct this state of affairs is what, in part, launched our research. We wanted to be as objective as possible, so we based our writing on the 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. Education rears disciples, imitators, and routinists, not pioneers of new ideas and creative geniuses. The schools are not nurseries of progress and improvement, but conservatories of tradition and unvarying modes of thought. Ludwig von Mises If we could have developed a book comprised of only numbers, charts, and graphs of Trend Following performance data, we would have. However, without any explanation, few readers would have appreciated all of the ramifications of what the data showed. Therefore our approach to writing Trend Following became similar to the one Jim Collins describes in Good to Great, in which a team of researchers generated questions, accumulated data in their open-ended search for answers, and then energetically debated it. Trend followers we studied form a sort of underground network of relatively unknown traders who, except for an occasional article, the mainstream press has virtually ignored. What we have attempted to do is lift the veil, for the first time, on who these enormously successful traders are, how they trade, and what is to be learned from their approach to trading that we might apply to our own portfolios. Trend Following challenges much of the conventional wisdom about successful trading. We were determined to avoid being influenced by knowledge institutionalized and defined by Wall Street. We were adamant about fighting "flat earth" thinking. During our research, we tried to avoid starting with an assumption and then finding the data to support it. Instead we asked the question and then, objectively, doggedly, and slowly, let the answer reveal itself. If there was one factor that motivated us to work in this manner, it was simple curiosity. The more we uncovered about trend foll

Amazon no longer offers textbook rentals. We do!

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

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

0136137180

Summary

Table of Contents

Supplemental Materials

Excerpts