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Trend Following (Updated Edition): Learn to Make Millions in Up or Down Markets
Trend Following Learn to Make Millions in Up or Down Markets - Updated Edition Author:Michael W. Covel "Michael Covel's Trend Following: Essential." --Ed Seykota, trend follower for 35 years and original Market Wizard "A mandatory reference for anyone serious about alternative investments." --Jon Sundt, president and CEO, Altergris "Michael Covel does an excellent job of educating his readers about the little-known opportunities available to th... more »em through one of the proven best hedge fund strategies. This book is like gold to any smart investor." --Christian Baha, founder and owner, Superfund "Covel has created a very rare thing--a well documented and thoroughly researched book on trend following that is also well written and easy to read. This is one book that traders at all levels will find of real value." --John Mauldin, Thoughts from the Frontline The Investment Strategy That Keeps on Making Money While Everyone Else Is Losing It: How Trend Followers Made a Fortune During the 2008 Stock Market Crash Did your buy and hold investments survive the crash of 2008? While many were getting hammered, trend followers were earning profits ranging all the way up to +40% for the month of October 2008 alone! Now, the #1 guide to trend following has been thoroughly updated to reflect 2008's cataclysmic events. Michael W. Covel reveals exactly how the trend followers achieved those amazing results. Using simple, up-to-the-minute charts from top traders, he doesn't just prove this strategy works: He shows why only a technical system based on following price trends can win over the long term. Best of all, he shows you exactly how to apply the same strategies in your own portfolio--so you, too, can keep on profiting no matter what happens next! For more than 30 years, trend following has been the one trading strategy that's consistently delivered extraordinary profits in bull and bear markets. While most investors were losing a fortune in the 2008 stock market collapse, stuck in buy and hold investments, trend followers were earning huge profits...up to a whopping +40% in the single month of October 2008! The proof's in this book: brand-new data you can view for yourself, plus all the information you need to know to utilize the same timeless strategies in your portfolio. In this fully updated edition, trend following expert Michael Covel introduces the traders and fund managers who've been using this strategy for decades, adding brand-new profiles such as David Harding, who manages $10 billion plus dollars through his London-based trend following firm. Then, Covel walks you through all the concepts and techniques you need to use trend following yourself. One step at a time, one simple chart at a time, you'll learn how to understand price movements well enough to profit from them consistently--in any market. Today, you need trend following more than ever. Read this book, and put it to work for you! *Real proof, real data, real results Includes over a decade of detailed performance charts, updated to include the Fall 2008 market crash *All the Information You Need...in One Number Why the market price still tells you all you need to know to trade--and always will--in both bull and bear markets *Pinpointing Targets of Opportunity What to trade, when to trade, and how much to trade *Meet Today's Leading Trend Followers Extraordinary trader profiles, from David Harding to John W. Henry to Ed Seykota Foreword by Larry Hite xiii Preface xvii Part I 1 Trend Following 3 2 Great Trend Followers 27 Part II 3 Performance Data 97 4 Big Events, Crashes, and Panics 123 5 Baseball: Thinking Outside the Batter's Box 181 Part III 6 Human Behavior 193 7 Decision Making 211 8 Science of Trading 221 9 Holy Grails 231 Part IV 10 Trading Systems 247 11 The Game 277 Afterword 285 Foreword to the First Edition by Charles Faulkner 299 Appendices Introduction to Appendices 305 A Trend Following for Stocks 307 B Performance Guide 347 C Short-Term Trading 375 D Personality Traits of Successful Traders 377 E Trend Following Models 381 F Trading System Example from Mechanica 385 G Critical Questions for Trading Systems 395 Resources 397 Endnotes 399 Bibliography 423 Index 431« less