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This book, Trend Following, by Michael Covel, is a trading strategy that capitalizes on sustained market price movements. It profiles successful trend-following traders, highlighting their methods, philosophies, and experiences, including their substantial gains and significant drawdowns. The text emphasizes the importance of disciplined risk management, objective decision-making, and a deep understanding of market psychology. The author contrasts trend following with other investment approaches like fundamental analysis and buy-and-hold, arguing for its superiority in capturing large market movements. Finally, the book explores the statistical underpinnings of trend following and addresses common misconceptions about this trading style.
By Todd's High Impact Reading List5
33 ratings
This book, Trend Following, by Michael Covel, is a trading strategy that capitalizes on sustained market price movements. It profiles successful trend-following traders, highlighting their methods, philosophies, and experiences, including their substantial gains and significant drawdowns. The text emphasizes the importance of disciplined risk management, objective decision-making, and a deep understanding of market psychology. The author contrasts trend following with other investment approaches like fundamental analysis and buy-and-hold, arguing for its superiority in capturing large market movements. Finally, the book explores the statistical underpinnings of trend following and addresses common misconceptions about this trading style.