Trend Following, 5th Edition: How to Make a Fortune in Bull, Bear and Black Swan Markets (Wiley Trading) 5th Edition
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From the Inside Flap
"When it is a question of money, everyone is of the same religion."
Want to take the financial journey to a new investing philosophy that might very well affect the rest of your moneymaking life? No one can guarantee the yellow brick road, but Michael Covel promises the red pill will leave you wide awake.
Trend Following reveals the truth about a trading strategy that makes money in up, down, and surprise markets. By applying straightforward and repeatable rules, anyone can learn to make money in the marketswhether bull, bear, or black swanby following the trend to the end when it bends. In this timely reboot of his bestselling classic, Michael Covel dives headfirst into trend following strategy to examine the risks, benefits, people, and systems. You'll hear from traders who have made millions, and learn from their successes and mistakesinsights you'll only find here. You'll learn the trend philosophy and how it has performed in booms, bubbles, panics, and crashes. Using incontrovertible data and overwhelming supporting evidence, with a direct connection to the foundations of behavioral finance, Covel takes you inside the core principles of trend following and shows everyone, from brand new trader to professional, how alpha gets pulled from the market.
Covel's newest edition has been revised and extended, with seven brand new interviews and research proof from his one-of-a-kind network. This is trend following for today's generation. If you're looking to go beyond passive index funds and trusting the Fed, this cutting-edge classic holds the keys to a weatherproof portfolio.
- Meet great trend followers and learn their rules and philosophy of the game
- Examine data to see how trend following excels when the you-know-what hits the fan
- Understand trend trading, from behavioral economics to rules-based decision making to its lambasting of the efficient market theory
- Learn trend trading philosophy and do it yourself or invest with a trend following fund
Trend following is not prediction, passive index investing, buy and hope, or any form of fundamental analysis. It utilizes concrete rules, or heuristics, to profit from a behavioral perspective. Trend Following is clear-cut, straightforward, and evidence based. If you're finally ready to profit in the markets, Trend Following is the definitive treatise for a complex world in constant chaos.
From the Back Cover
"Michael Covel's Trend Following: Essential."
—Ed Seykota, profiled in Market Wizards
"Covel's Trend Following is the must-read for all investors. Why? Because every investor needs a trend to make money, and when the trend shifts investors need to follow it. Read it."
—Wesley R. Gray, PhD, CEO, Alpha Architect, and author of Quantitative Momentum
"While enjoying this book, be sure to look up another resource from Covel–his remarkable podcast. Michael has a gift for interviewing, and it is fun and educational to follow him into the offices of many serious traders."
—Dr. Alexander Elder, Author, The New Trading for a Living
"Covel's Trend Following has become an investment classic and a must read for anyone who wants to better understand how to profit from the financial markets using systematic and unbiased approaches."
—Cullen Roche, Founder, Orcam Financial Group, LLC
"Trend following: If it is going up, buy it. If it is going down, sell it. How could something seemingly so simple be so controversial? The answer lies in the definitions: What does going up mean? Going down? What's a trend? What's a turn? These questions have a wide variety of answers, largely dependent on the goals and risk/reward preferences of the answerer. In Trend Following Mr. Covel covers the waterfront. You'll find many definitions of trend following here, each with its advocates. You will be able to compare and contrast approaches and perhaps find one that suits you. At the very least, after reading this book you'll have the territory mapped and understand what trend following has to offer."
—John Bollinger, Founder, www.BollingerBands.com
"While financial television obsessively tracks every tick in the stock market, Michael Covel's Trend Following continues to draw attention to a strategy, diversified trend following, that generates unique returns for disciplined investors with a long-run time horizon."
—Tadas Viskanta, Founder and Editor, Abnormal Returns; Author, Abnormal Returns: Winning Strategies from the Frontlines of the Investment Blogosphere
- Publisher : Wiley; 5th edition (April 24, 2017)
- Language : English
- Hardcover : 688 pages
- ISBN-10 : 1119371872
- ISBN-13 : 978-1119371878
- Item Weight : 2.86 pounds
- Dimensions : 7.5 x 1.5 x 9.4 inches
- Best Sellers Rank: #97,400 in Books (See Top 100 in Books)
- Customer Reviews:
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Top reviews from the United States
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Two main points of concern. The first is the book's editor failed the author. Mr Covel clearly did lot of research and I feel that every single fact, anecdote and piece of data he uncovered is included. Don't equate length of the book to value. Much of the text is verbatim interviews with the TF gurus. Additionally there are so many quotes that they lose whatever motivational or educational value the author intended. Seriously, it feels like at least one per page. If you're reading on the kindle, it's worse. The quotes are interspersed with the text and only italic font distinguishes the quotes from the narrative. Even the author mentioned this is a recent podcast.
The second point of concern was my biggest disappointment in this highly anticipated book: the book will not teach you how to be a trend follower. Perhaps it's best to explain by describing what I was hoping to see.
Techniques. The author devotes a few pages to describing a system in detail, using moving average crossovers, but does not explain them with the same repetitive, elementary language that he uses to explain why TF is fantastic. The author mentions that traders need a toolkit, but never explains for what should be included in there. He mentions back-testing, but never guides the user how to actually back test a system. Where are the other indicators, their uses, strength/weaknesses?
Charts. Charts. Charts.
I would welcome the inclusion of charts. Charts on stocks or futures identifying when a TF would have entered or exited and the rational. I found a few charts in Chapter 4 showing entry and exit points, but never why a trade was made at that point.
Stories of actual trades: successful ones and why they worked. Failures and what went wrong? Was there a human bias? Did it violate the trader's system? I seriously doubt the author is an TF investor; at least a successful one. It appears to me he makes his living worshiping the TFs and their success not trying to emulate it.
If you're interested, I found High probability trading : take the steps to become a successful trader (Professional Finance & Investment) to be a wonderful book that includes all the items I hoped to find in this book (first-person account, dozens of trade examples, details on several indicators, back-testing guide, suggestions on dealing with the human emotions that can hinder any trading system.).
is constantly comparing trend following with fundamentals. I just wanted to learn how to use trend following
what it is and how to do it. The book gave a very rough idea of how it works, lots of charts with no idea how to generate those...and basically ends up saying "trust me it works". It's not like the book is that complex either.
The book just keeps trying
to make the same point that trend following is good NOT how to use it!
I wanted to buy the author's other books when I first started reading, but there's no way I would waste my time.
Honestly - the main message is 'trend following works'. Thing is, you probably already largely believe that or you wouldn't even be considering buying this book.
THIS IS NOT A BOOK THAT TEACHES TREND FOLLOWING. This is merely an overly long brochure for upsells (expensive courses that I also doubt have much value) that repeats 'trend following works'.. a lot.
About the author: How many copies the Authors previous books sold.
Preface to the 5th Edition: Why this is the greatest book about growing vegetables that will ever be written.
Introduction: Prepare to be shocked, you might want to sit down for the radical ideas that follow.
Chapter 1: Vegetables grow and there is a subversive group of mavericks who eat them.
Chapter 2: Part 1: Great vegetable growers.
Chapter 2: Part 2: Why everyone who says vegetables don't grow is wrong.
Chapter 3: Don't fall into the trap of believing vegetables are poisonous.
Chapter 4: The psychology of successful vegetable growers.
Chapter 5: The importance of having a system for growing vegetables.
Chapter 6: Baseball, how to think outside of the box.
Chapter 7: Intuition and experience.
Chapter 8: How people end up paralyzed by vegetable-related decisions.
Chapter 9: Data from high-profile vegetable growing champions the press doesn't want to cover.
Chapter 10: Why you should select vegetables that fit your personality.
Chapter 11: Professional Horticulturists can only tell you what happened to your vegetables in the past.
Chapter 38: You'll find almost no information about this reclusive vegetable grower.
Chapter 39: The uselessness of black-box vegetable systems.
Chapter 40: An interview with the former growing partner of that failed vegetable grower that was the subject of my previous book.
Chapter 41: The life story of a cattle farmer's son who finally convinced his old man to try growing tomatoes.
Afterward: The reaction to the first edition of this book.
Foreward to the first edition: How little I knew about vegetable growing as an antiques dealer.
Foreward to the second edition
Foreward to the third edition
Foreward to the fourth edition
Foreward to the second edition
Deep-sounding quotes about growing vegetables.
Appendices: Introduction to the eight Appendices.
Top reviews from other countries
Readers looking for quick takeaway strategies will be disappointed as this will require some work on their part. The insights in this book are more valuable than any off-the-shelf strategy would ever provide. No matter whether you are a 'trend follower' or trade more active strategies this book will help you build effective habits.
On another note, the Trendfollowing podcast by M Covel is one of the best trading/interesting podcasts out there, on a variety of topics and would highly recommend you check it out if you haven’t done so already, you can thank me later.
To your success!