|Title||:||Trend Following: How Great Traders Make Millions in Up or Down Markets, New Expanded Edition, (Paperback) by Michael W. Covel (2007-03-19)|
|Publisher||:||FT Press 1742|
|Number of Pages||:||178 Pages|
|File Size||:||972 KB|
|Status||:||Available For Download|
|Last checked||:||21 Minutes ago!|
Trend Following: How Great Traders Make Millions in Up or Down Markets, New Expanded Edition, (Paperback) by Michael W. Covel (2007-03-19) Reviews
Das Buch kam pünktlich. Es kam in gutem Zustand. Alles perfekt.Wie aus zweiter Hand ist, haben Sie unterstrichen, usw. Aber sie waren schon im Angebot angegeben, so habe ich keine Überraschungen gebracht. Es ist ein sehr gutes Buch, und zu einem günstigen Preis. Empfehlen antiquarische Bücher zu kaufen, oft Sie nicht bemerken, dass sie aus zweiter Hand sind.
I read this book a few years ago. I thought the book was well written and had very good principles. After reading over 100 stock trading books and as many books on investing,and reading this one for a second time, I have to say this book ranks as #1 in my personal library. The author Michael Covel has cut through all the pundits opinions about the market and presents how the most successful money mangers and traders really make huge cumulative returns over long periods of time. How do they position themselves consistently to make money? They follow trends. They create systems that tell them when to buy or sell based on the beginning of a trend in a market. They are not experts on the fundamentals of any one market, they are masters of reading the action of price and volume and the direction of the trend. They cut their losses short when they are incorrect but when they are right they let the winning trade run as high as possible and sell when the trend stops and reverses. So they get the meat of the trend, not buying at the low or selling at the high but waiting for the market to tell them to get in and then get out. Jesse Livermore and Nicholas Darvas were both trend traders who made millions along with Richard Dennis, Ed Seykota, and William O'Neal of our own era. John W. Henry bought the Boston Red Sox with his profits from managing his trend following fund. The book documents records from years of successful trading of many of trend following funds.Trend followers do not try to predict the future, they only follow the momentum of the market and get in or out when their system tells them. They go both long and short with no bias to either. While they may have steeper draw downs in the short term they always have high returns in the long term. They almost always find themselves positioned correctly during big events, crashes, and panics because the market was already warning by the herd behavior.In the first week of January of 2008 with the DOW failing to make new highs and a downward trend beginning in the market on increased volume and money flowing out of the market, I made the decision to take my 401k and brokerage accounts to all cash until the trend turned back possible. I stayed in 100% cash through the collapse of the stock market all the way through March 2009. I only day traded stocks in my brokerage account, and started dollar cost averaging back into mutual funds in my 401K when the DOW was at 7500 to 6500 and back to 8100. Trend following is what what helped me resist the temptation to get back into a falling market, thinking I was getting stocks cheap. I promised myself after the year 2000-2002 losses I suffered I would never give back my profits in a nasty bear market. Michael Covel's book gave me the principles I needed to lock in my 20% annual profits I made in 2003-2007. Saving me over $100,000 in losses that would have occurred from buy and hold investing. Thank you Mr. Covel, the book is worth much more than the cover price!!!
I find it remarkable and I was quite impressed how someone can write 200 pages with just one message, "there are a number of commodity trading advisers who have made lots of money by following trends". Its an old message that the trend is your friend, but Covel has written a whole book on this one trading adage. You will not learn much else from this book, so if you are looking to improve your trading or investment skills look somewhere else.
This book was dead to me. It reminded me of Seinfeld: "a book about nothing". Well, it is about trend following, but it talks about it so verbosely and restates the obivous over and over again I just couldn't get past chapter 1. I looked at the recommended strategies in the appendix, which are simple moving average crosses, which don't work very well but I guess if you want to avoid losing 40% a year in your IRA MA crosses can help keep you out of trouble, but the examples don't consider the problem of choppy time periods where MAs can cross frequently, whipsawing you away from your account balance, which is why many MA cross strategies don't work very well. If you aspire to get some alpha above and beyond the S&P's performance then I guess this could be useful. But as an active trader this book is of no value. Maybe I'm being too harsh. Maybe for a complete novice this book would be more useful, but I didn't get anything out of it.
If you are looking for clear cut set of rules/strategy that you, the individual investor, can follow to make money, then look elsewhere. The trend followers solely follow the movement of the price in exclusion to everything else. They identify a trend - uptrend or downtrend - and play upon it. As noted in the book, they react to and not predict the prices.The methods, far and few, explained in the book are definitely not suitable for me - the retail investor. First of all, I don't have access to a trading system that can follow the rules outlined. Second, I am not a trader in the strict sense myself, where trades are triggered by a system without me realizing what is happening. To perfect such a system would take me ages given that investing isn't my main bread winner. This book will pass off as a great text book in the annals of the Ivy League schools, but when it comes to making money for you, the individual investor again, I think you are better off reading the likes of Jesse Livermore, Nicolas Darwas and William O' Neal. Read the Lessons from the Greatest Stock Traders of All Time' by John Boik or any of William O'Neals books. They define clear cut rules that we can all follow and make money. How else would I have made about 80K in the past three years compared to the first 8 years of my investing where I barely made any.There are a lot of anecdotes in the book - literally, every page has 2-3 of these. All of these may impress, but in the end they are nice to feel scholarly about. If you are a beginning investor, the first chapter -Trend following, all of 22 pages - lays the foundation by explaining the different schools of thought regarding investing. Then there is 55 pages outlining the great trend followers are their performance but never in clear and precise terms or rules what their methods are. It almost feels sycophantic reading about other 'great' beings the way it is written. At last, after reading almost 210 pages, I got to see some system of trading. All these are pretty dry.This is possibly the only one exception to the many great investing books in my library that I could have borrowed from the library. You will be better off reading 'How to make money in stocks..' by William O' Neal again and again and again.
I'm a fan of Covel and his podcast so I already knew his trading style a little bit but I wanted a closer look and this book delivered