Trend Following – How Great Traders Make Millions
A most interesting book – definitely a ‘must have’ on your shelf. Pull out the plastic and get it!
Trend Following is presented as a replacement for the Market Wizard series of books. However, it is not. The author’s own mindset comes across so strongly that it is difficult for the reader to see into the minds of those whom the author interviewed. Nevertheless, the book would make a good addition to the Market Wizards series.
Trend Following is well constructed, well written and an excellent distillation of the research undertaken by the author. Backed up by trading ‘legends’ like Ed Seykota, it convincingly argues that the most successful trading systems are based on trend following.
While you may read the book in bed, especially the first time, it is best read at a desk with a notepad handy. While seeming to come from the perspective of technical analysis, it is still a very good book on trading psychology. Covel gives the reader solid evidence for his ideas by drawing on the experiences of people and of specific history-making events.
All the people interviewed are survivors in the world of trading. They are open in sharing their thoughts, freely giving insights into the markets and into the emotions and feelings that come between people and their ability to follow their systems. The book is both a great read and an insightful textbook for all traders and investors.
This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.
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