Trend Following: How Great Traders Make Millions in Up or Down Markets (Financial Times Prentice Hall Books)

Having studied the markets for years with a library of trading books, that has my shelves groaning I have finally read a book which lays out the stark realities of trading in the bluntest and most straight forward fashion that I have read in years. The book is refreshing in its direct and open depiction of trading and in my opinion clears away a great deal of the mystery, embellishment and blatantly false information that some books out there would have us buy into.Trend Following is clearly written, with great anecdotes and comments adding to the plainly written methods used in trend following with its associated risks and rewards. I would highly recommend this book to anyone interested in any form of trading or investing, regardless of whether they believe they are suited to this type of trading or not. For 30 Years, One Trading Strategy Has Consistently Delivered Extraordinary Profits In Bull And Bear Markets Alike: Trend Following. Michael Covel Rigorously Analyzes Historic Performance Data Proving That Trend Following Trading Works. He Goes Right To The Source For Insight From Some Of The Best Trend Followers Ever. How To Limit Risk, Employ Discipline, And Swing For The Home Run Are All Part Of Trend Following. Covel Also Debunks Wall Street Holy Grails Such As Buy And Hold And The Use Of Fundamentals For Trading Decisions. Trend Following -- The Market -- Winning And Losing -- Investor V. Trader: How Do You See The World? -- Fundamental V. Technical: What Kind Of Trader Are You? -- Discretionary V. Mechanical: How Do You Decide? -- Timeless -- Has Trend Following Changed? -- Trend Following Modus Operandi: Follow Price -- Follow The Trend -- Handling Losses -- Great Trend Followers -- Bill Dunn -- John W. Henry -- Ed Seykota -- Keith Campbell -- Jerry Parker -- Salem Abraham: Texas Pioneer -- Richard Dennis -- Richard Donchian -- Jesse Livermore And Dickson Watts -- Performance Data -- Absolute Returns -- Fear Of Volatility; Confusion With Risk -- Drawdowns -- Correlation -- The Zero-sum Nature Of The Markets -- George Soros Refutes Zero-sum -- Big Events In Trend Following -- Stock Market Bubble -- Long Term Capital Management Collapse -- Asian Contagion And Victor Niederhoffer -- Barings Bank Meltdown -- Metallgesellschaft -- Final Thoughts -- The Coming Storm -- Baseball: Thinking Outside The Batter's Box -- The Home Run -- Moneyball And Billy Beane -- John W. Henry Enters The Game -- Pedro Stays In -- Human Behavior -- Prospect Theory -- Emotional Intelligence: Daniel Goleman -- Charles Faulkner -- Ed Seykota's Trading Tribe -- Curiosity Is The Answer, Not Degrees -- Commitment To Habitual Success -- Decision-making -- Occam's Razor -- Fast And Frugal Decision-making -- The Innovator's Dilemma -- Process V. Outcome -- Science Of Trading -- Critical Thinking -- Chaos Theory: Linear V. Nonlinear -- Compounding -- Holy Grails. Michael Covel. Includes Bibliographical References (p. 295-302) And Index. 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 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: even more backtested trend following results. Covel thoroughly debunks misinformation and failed advice. 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. Annotation Trend Following is the only long-term trading strategy proven to profit consistently in bull and bear markets alike. Now, Michael Covel demystifies this little-known strategy, using hard performance data to prove its extraordinary value. Covel introduces you to great traders who've built enormous fortunes with Trend Following--including Boston Red Sox owner John W. Henry, Bill Dunn and legendary Ed Seykota. You'll learn exactly why stock prices contain all the information you need to ride trends--and profit A market is simply a place where buyers and sellers gather to trade and exchange goods, buying and selling for any number of reasons.