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

3.7  ·  Rating details ·  606 Ratings  ·  36 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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Feb 16, 2009 rated it did not like it  ·  review of another edition
This book is rubbish. It's full of baseball analogies, and no math or hard research.
Jul 13, 2009 rated it did not like it  ·  review of another edition
Shelves: money
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
Aug 12, 2014 rated it it was amazing
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
May 21, 2017 rated it it was ok  ·  review of another edition
Shelves: investing
Covel is famous for; but this book is a bit disappointing.

First, Covel spends too much time describing famous trend following investors, how good their track records are, but I think the key analysis should be why trend following works and how it works. The latter parts were mentioned, but too briefly. I think trend following works because of human biases of anchoring, adjusting for new information reluctantly, and holding on to losers too long (loss aversion).

Second, there ar
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
Nov 02, 2014 rated it really liked it  ·  review of another edition
Shelves: trading
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.
FSU Alumni
Michael W. Covel (M.B.A. '94)
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.
Oct 08, 2017 rated it it was ok  ·  review of another edition
I like the ideas behind the trend following trading. After reading this book and the author's other book I'm left wondering which stocks should I select to start following the trends? I emailed the author asking this question and at first, he implied that I didn't read the book. Then he said I could sign up for his program which costs thousands of dollars.

I thought the point of this book and the turtle experiment was that anyone could be trained to do trend trading. Apparently, the author wants
Mar 11, 2017 rated it did not like it  ·  review of another edition
waste of money

whole book is about how trend trading is great and that buy and hold is for fools. also every page has 3 to 4 long quotes of other traders. there is no section in the entire book which will make you millions despite the title.
Eric Zhu
Dec 07, 2010 rated it it was ok  ·  review of another edition
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",
Andreas Lorenz
It is in many ways fine book, but...

I find myself thinking that this book has a big disconnect between the declaration (mainly its front page) and the content. It promises to address "how" great traders make millions and it promises that you can "learn how to", but it never really gets to the lowdown of these promises. Rather this is eulogy for trend following, or even an apology for trend following as the book spends much time countering the supposed criticism of other forms of trading. Much of
Brad Mills
Makes a good case for trend following, but no actionable trading lessons. Misleading Length. Misleading Title.

I am a millennial, an entrepreneur, a creative person. I am not a trader, but I'm interested in trading and have made some mistakes in the past trying to buy and sell stocks or mutual funds. This book seemed like it would explain a simple type of trading, one where you do not need to be a computer programmer or dedicate your life to day trading.

I previously have read "The Complete Turtl
Feb 20, 2014 rated it it was ok  ·  review of another edition
Shelves: finance
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).

Matthew Raleigh
Apr 24, 2014 rated it it was amazing  ·  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.
Apr 09, 2013 rated it did not like it  ·  review of another edition
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."
Oct 31, 2009 rated it really liked it  ·  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.
Jul 13, 2010 rated it did not like it  ·  review of another edition
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
Terry Kim
Sep 27, 2015 rated it really liked it  ·  review of another edition
Great book for Trend Followers. I read this at the same time with The Complete Turtle Trader, also by the same author. The books have some great quotes from successful Trend Followers and what makes them so successful in their approach.

Long story short, Find your system, stick to it, be patient (and very patient for the right move), ride the trend. Easy said than done.
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.
Anthony Cheng
Mar 09, 2012 rated it it was amazing  ·  review of another edition
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.
Jan 22, 2009 rated it really liked it  ·  review of another edition
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.
Jul 08, 2016 rated it it was ok  ·  review of another edition
Light on substance. Reads like a gossip magazine for picking up on the imitable traits of rockstar traders. Other times resembles a hallmark card with trading truisms such as "buy low sell high", "fade the fed", "bet cautiously to live to fight another day" ...
Dec 24, 2007 rated it liked it
Shelves: stocks
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.
Jul 30, 2011 rated it it was ok  ·  review of another edition
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.
Apr 26, 2009 rated it it was amazing  ·  review of another edition
Really great book that should be a must read for anyone that plans on saving for retirement.
Azmir Ismail
Dec 27, 2010 rated it really liked it  ·  review of another edition
A book that explains and supports the concept of trend trading in the financial markets of all kinds. Recommended for traders.
Albert Cortes
The book gives you overviews of several trend followers by way of interviewing them. Of course, none of them reveal their complete trading system. But you do pick up little nuggets along the way.
Apr 12, 2008 rated it liked it
Shelves: managing-money
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.
Ed Ball
Oct 22, 2013 rated it really liked it  ·  review of another edition
Shelves: investing
Another book that provides insight to successful traders, but no secrets revealed here.
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