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

3.61 of 5 stars 3.61  ·  rating details  ·  318 ratings  ·  26 reviews
Revealing the little-known strategy used by the world's most consistently successful traders, this book profiles those who have made enormous fortunes by following trends. It introduces key concepts of trend following and shows readers how to use it immediately in their own portfolios.
Hardcover, 336 pages
Published April 23rd 2004 by Financial Times Prentice Hall
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There were a few interesting tidbits contained in this book, but most of it I could have done without. For someone who complains that trend-following critics spend too much time cherry picking bad examples and not looking at the data, the author:
* spent half the space in the book on "illustrative" quotes which always seem to be on his side
* counters each cherry-picked (both by the original critic and then by him as a straw-man) criticism with multiple cherry-picked counter examples
* uses perform
The book can be summarised by the following line: "The trend is your friend". Indeed the book can be a bit over the top and I feel unnecessarily (and almost sycophantically) praises trend following. Covel often repeats the point, there are successful trend followers, therefore it must work. However I do not doubt that there are those who have lost money trend following (indeed if we imagine for a moment everyone in the world is a trend follower - for a trend follower to gain another must lose).

This is a book that does not provide any winning strategies or sales gimmicks (hence the rather low public rating). This is a book that provides the mindset and process to become a successful trader. I would definitely recommend this book to any trader or investor. It goes against the grain of "buy and hold" philosophies.

This book does a great job at tying in what it takes to be a great trader; not only inside the stock market but outside. It could be considered quite misleading as you will not
This book is rubbish. It's full of baseball analogies, and no math or hard research.
Matthew Raleigh
Apr 24, 2014 Matthew Raleigh rated it 5 of 5 stars  ·  review of another edition
Recommends it for: Anyone interested in making money in up and down market
Recommended to Matthew by: head of an Australian Asset Manager
Trend Following was recommended to me during the GFC by a mentor in the financial sector. The book was well written, well researched and spot on about fundamental analysis and predictive methods. Michael provided evidence of how the strategy can work in the real world and what I believe to be a first, track records and performance data of successful traders. I have read all three reversions and will continue to buy for clients and staff as a must read book on making money in up and down markets.
Eric Zhu
Reviewed: I just finished this book today.

There is a lot I want to say about this book.

First of all, I only give it a 2 star. Although this is a national bestseller. I can only say Michael the author is a marking genius rather than a good trader or a good person know well about trading. Yes, he did collect a lot of examples and mottos about trading. But what is really mean to you? What is teach you about trading? Nothing.

For example, old saying such as:"cut your losses and let your profit run",
Clifford Stanfield
Excellent. Learn how professionals do it. One key take-away... how to size your trades to fit your risk appetite with an instrument's volatility.
Maciej Janiec
You won't find any working investment methods / strategies / systems in this book.

Instead, it is quite a lengthy treaty about the superiority of trend followers over all other investors (with small exception of Jim Simons from RenTec, for the author seems to have no idea what Simons is actually doing).

One thing you should definitely remember from this book is: the trend followers never lose any money. They may have some deep and possibly terminal drawdowns though...

Nevertheless, there are many
Jason Green
Cover certainly makes a great case for trend following. Like the Complete Turtle Trader, there are no specific trading systems in this book. But if you're paying attention, you pick up some great insights on how to approach the markets and where to begin in developing your own system.
Beyond a waste of time. Nice storytime material but of little actual help with trend following.
FSU Alumni
Michael W. Covel (M.B.A. '94)
Oct 31, 2009 Mike rated it 4 of 5 stars  ·  review of another edition
Recommends it for: Anyone. but esp. those interested in financial trading systems
Covel's book was a follow-up to "The Way of the Turtle", as it covers the turtle traders as well as other trend following systems and people. It's more of a good round up of who's done what and their convictions/principles in getting there. Some of it is conjecture, other people he has spoken with and interviewed.

I think it's another good "foundation stone" for those interested in both the theory and execution of trend following systems.
At least it was a quick read...perhaps I wasn't a fan since my last read was 'Fooled by Randomness'. Perhaps I didn't like it because they spent 300 pages trying to convince me that trend following works by pointing to past performance, and didn't really spend any time talking about how to develop trading systems (that's sort of in the appendix, but still not that good). Didn't really learn anything groundbreaking or new
This book is the worst kind of useless, in that it discusses the "superiority" of a particular trading philosophy (i.e., trend following) without giving the reader any insights on actual trading strategies that implement the philosophy.

Let me save you the trouble: "Buy stocks when they are going up and then sell them when they are going down, preferably before they go below the price you paid."
Well written book and an interesting subject - It appears that most hedge funds do not subscribe to trend following techniques as most of them lost money in 2008 when most trend followers had great home runs. CTA/Trend following is a must in every professional investors portfolio.
Anthony Cheng
The buy-and-hold strategy is full of assumptions and biases that bankers selling financial products will never tell you. The market is a collection of judgments about price, meaning human psychology is more important than the so-called fundamentals.
John Roberson
Covel spends too much of the book arguing against Trend Following's critics and too little actually explaining Trend Following. Of course, there's plenty of wisdom to cutting losers and riding winners, and the results speak for themselves.
Buy & Hold is not a good strategy for Stocks... I appreciated the book more after enrolling in a Technical Analysis class. Its a discipline where traders use price action to get in and out of the market.
This is an excellent book on investing in stocks that takes the focus off of fundamental pricing and places it on the current momentum of the stock. Great read so far.
For an overview of the people and experiences behind trend following - fine. But if you really want to get into the technicalities of it, not useful at all.
covell explained to us how do they think. although how do they do it vary from one trader to another. very inspiring and above average book.
Dean gave this to me just to get an understanding of his views. I don't want to be a millionaire, I would not wish that upon anyone.
Azmir Ismail
A book that explains and supports the concept of trend trading in the financial markets of all kinds. Recommended for traders.
Really great book that should be a must read for anyone that plans on saving for retirement.
Ed Ball
Another book that provides insight to successful traders, but no secrets revealed here.
Anthony Close
Not helpful. Sales gimmicks.
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