[.ca] Trend Following: How Great Traders Make Millions in Up ... (ISBN 0136137180)

More about Trend following performance than trend following:
This book is an easy read, and most people can read it cover to cover within a few days. The question is, what do you get out of it? Not much really... You learn that trend following works for a number of traders who are doing really well using this strategy, and those that fail are either not trend followers, or are not discipline enough. You learn that the system that these traders use are very simple, and haven't changed for years. However, it doesn't say how their system actually works. It touches on rish management/position sizing briefly, and say that it is the most critical part of the system, but doesn't discuss how to do it. Overall, this book felt more like a overgrown brochure for one of these trend following firms than a book about trend trading. For me, it is not really worth the money because the author only offered a superficial study of the data, but not an in depth look into the strategy and what makes it take.

Trend Following Controversy:
This book sure has had generated some controversy! Tried to read it with an open mind. However, I was influenced by the large number of market pros and traders that endorsed it at the author's web site for the book. My conclusion? If you want someone to promise you the world with loads of instant riches, Covel is not your guy. But if you want a down to earth, incredibly well researched work, that explains Trend Following from top to bottom -- buy this book. A great quote from Ayn Rand mentioned in the book sums up the mindset you need: "What objectivity and the study of philosophy requires is not an 'open mind,' but an active mind-a mind able and eagerly willing to examine ideas, but to examine them critically."

Gotta Read it:
I've always been intrigued by what makes top traders tick like the ones in Market Wizards. Because like most people what I do is just keep on investing in the same mutual funds I've invested in for years. This book made me think that there actually is an alternative to buy and hold.

If you are a chartist this book inspires:
The book inspired me to tune-up my method and it is nice to know that there are traders/investors/speculators that achieved the level of consistency. Being an entertaining read, it comes short in one area, emphasizing style over skills. The method you use is not as important as how much dedication you are able to commit to constructing the method and training yourself in it. You still can loose money with trend trading if the method is poorly constructed and/or executed in strictly mechanical fashion. I don't remember if I read this in this book, but Ed Seykota said that after the numbers it is all psychology. By the way, I've checked reality on other reviews; can someone tell me why people expect to buy a book for twenty dollars and expect a ready recipe to make millions? You won't, however buying and reading this book may be a small, highly enjoyable stepping stone.

Big Events causes disasters and profits:
Good overview book. The information presented is substantial and meaty. Trading biographies, reviews of major events in the markets and trading psychology are all covered. The author's use of baseball is particularly impressive. Linking a hobby to finance took some skill. But trading is a lot like baseball. Aim for the fences and swing hard. Similar to trend following. Look for the biggest and best opportunities to profit - trends.