Trend Following: How Great Traders Make Millions in Up or Down Markets

One Response to “Trend Following: How Great Traders Make Millions in Up or Down Markets”

1. Steve Burns
   December 5, 2009 at 11:14 am

   This book is a must have in every traders library. Michael Covel has done a great job in explaining how trend traders operate. For all those doubtful of technical trading and believe fundamentals are the only way to go, be aware that trend trader John W. Henry bought the Boston Red Sox with the wealth he amassed through trend trading. The biggest draw back for trend followers is the large drawdowns that are experienced. Those that stick with the system though make back their losses in a short time and make huge money over the long haul.
   
   This book will show you the actual real track records of many trend traders. It shows examples on charts of when trend traders took positions on actual trades. Their goal is to get in after the trend begins and get out before it is over, capturing the meat of the trend. Trend followers do not try to predict the market they simply follow the path that it is moving on. The book shows how many trend followers are positioned before big events so the successfully catch huge moves. The author explains how hard it is psychologically to just follow systems and put your ego in check. Even great traders only have 50-60% winning trades, the key is cutting your losses short and letting your winners run. The point of the book is developing a winning trend trading system and then following it with proper money management. Great book packed with useful information and sprinkled through out with great quotes from trading legends. Also read Covel’s other book the complete turtle trader. If you can use what you learn in this book, it could make you wealthy.
   Rating: 5 / 5