Michael Covel’s Trend Following: Essential.
Trend Follower for 35 years, Incline Village, NV
Ed was originally profiled in The Market Wizards by Jack Schwager
My favorite of the new TA [technical analysis] books is ‘Trend Following’ by Michael Covel. Straightforward, easy to read, this book is rich in details about why trend following is such a successful strategy amongst some of the world’s best-performing hedge funds.
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. It touches on a wide variety of the principles and practices which make for successful trend following. This is one book that traders at all levels will find of real value.
Millennium Wave Investments, Arlington, TX
The toughest play in baseball is to catch a ball hit directly at you. The toughest thing for any trader is to stay with the trend. The temptation always is to get fancy, to fade the long-term move, to pretend that you are smarter than the market somehow. The big money is made by identifying the trend and sticking with it no matter what. Michael Covel has written an indispensable work to help you do just that.
President, Rosewood Trading, Author and Trading Consultant
As a contrarian investor I have been skeptical by default of trend following models. Still, after reading Michael Covel’s excellent and eye opening book about some professional traders, who with iron discipline follow market trends up and down and in the process achieve impressive capital gains, I find myself more inclined to endorse a trend following approach to investments. In fact, I wished that at times I would have had the kind of discipline the trend followers have in terms of entirely reversing their investment positions once the trend dictated such a posture. I think that Michael’s Trend Following is an outstanding read from which all investors can learn to trade markets better by limiting their risks and maximizing their profits through a more disciplined approach to investments.
Managing Director, Marc Faber Ltd.
Editor, ‘Gloom Boom & Doom Report’
I think the book did a superb job of covering the philosophy and thinking behind trend following (basically why it works). You might call it the Market Wizards of Trend Following.
Van K. Tharp, Ph.D.
Author of Trade Your Way to Financial Freedom
Please read [Trend Following] whether you think you have an interest in trend following or are not quite sure. I guarantee you will be happy that you took the time. It, of course, covers how trend following works, how it’s done, and who can do it, and it doesn’t beat around the bush with generalities. But, on top of that, it really delves into the human nature of inventors and traders like I’ve seen few books do well, and that alone will make it worth the read…Once you begin reading the book, if you have a choice, I bet you will put it down only for meals and bathroom breaks. It’s that well done…Again, get this book. Covel has hit a homerun with it.
Gail Osten, Editor-in-Chief
Stocks, Futures & Options Magazine
Official Journal for Personal Investing in Stocks, Futures and Options
September 2004 Book Review
Read Complete Review (PDF)
Trend Following is a great addition to my trading library because I trade using this philosophy. Whenever I am in a drawdown and thinking of overriding my system I reach for the book to remind me why I selected trend following to begin with. Trend Following (the book and the approach) is not for everyone is this age of short-term trading, but for those who are looking for a different approach to their trading or just learn about trend following the book is a great resource.
For investors willing to engage in some insightful discussion of their core investment philosophy, the book will challenge long-held beliefs. Perhaps the most controversial argument is that Wall Street’s great effort of analysis and projections of the future are of little or no use to the serious investor. According to Covel, if the objective is to have a defined strategy to put capital to work for a profit, then investors are traders and the difference is more than a parsing of semantics…Investment books that have a lasting appeal offer insight that resonates with a large number of investors. We believe Michael Covel’s Trend Following will be such a book. Importantly, Covel makes the case that investors are likely to benefit from having a portion of their portfolio invested in a non-traditional approach that adapts to whatever stock or asset class is exhibiting definable trends. While this ‘trader’ mentality may strike some as inappropriate, this approach is becoming modus operandi for some of the most sophisticated and successful long-term investors.
Former Legg Mason Chief Market Strategist
Read Complete Review (PDF)
Michael Covel’s book, Trend Following, is a great read. If you haven’t already bought it and studied it, you should. It discusses the rationale for trend following, the tremendous long-term track records of many prominent trend followers, like Bill Dunn, John Henry, and Ed Seykota, and explains how those track records were generated.
A mandatory reference for anyone serious about alternative investments.
President and CEO of Altegris
Michael Covel does an excellent job of educating his readers about the little-known opportunities available to them through one of the proven best hedge fund strategies. This book is like gold to any smart investor.
A most interesting book — definitely a ‘must have’ on your shelf. Pull out the plastic and get it!…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…The book is both a great read and an insightful textbook for all traders and investors.
Your Trading Edge Magazine
Michael Covel’s book is the definitive guide to trend trading. Backed by real world results from some of the biggest and best money managers in the United States, his book will put you on the path to successful trend trading.
The only two tests of a really good trading book are: Will it help you make money? Will it help you cut your losses. Trend Following passes both tests with flying colors. It has a clarity that is compelling. While it discounts what I regard to be the useful role of macro analysis in understanding the origins of trends, it nonetheless reinforces the most important rule in sound trading — trade with the trend — in a way that triumphs. Last take: If you are a quote junkie like me, the quotes alone are worth the modest admission price.
Professor of Economics and Public Policy, Graduate School of Management
University of California, Irvine
Trend Following by Michael Covel explains the wisdom behind the trending function of the markets. The practical application of this philosophy is based on the pervasive logic of price behavior. Market Stories and Market theories will come and go but trends will remain. Follow them…and study this book.
Author of Behavioral Trading and creator of Market Semiotics
I think that this book documents a great deal of what has made Trend Following Managers a successful part of the money management landscape (how they manage risk and investment psychology). It serves as a strong educational justification on why investors should consider using Trend Following Managers as a part of an overall portfolio strategy.
Retired CEO, Trendstat Capital Management, Inc., Scottsdale, AZ
Tom was originally profiled in The New Market Wizards by Jack Schwager
At a time when the conventional wisdom is often wrong and many traditional indicators have lost their relevance, it’s good to know there is resource out there that traders can depend on. With its timeless wisdom and valuable insights on making money, Michael Covel’s Trend Following is definitely your friend.
Author of The New Laws of the Stock Market Jungle
Michael Covel mixes a unique blend of trend following matters with the thoughts and quotes of successful traders, investors and society’s leaders. This is a valuable contribution and some of the best writing on trend following I’ve seen.
Robert (Bucky) Isaacson, Woodside, CA
Managed Money and Trend Following Pioneer for 30+ Years
Michael Covel’s Trend Following is a breakthrough book that captures the essence of what really makes markets tick. Diligently researched and comprehensive in scope, it will replace Market Wizards as the must-read bible for a new generation of traders.
Portfolio Manager, Capitalistpig Hedge Fund LLC, Chicago, IL
Fox News Contributor
Trading with the trend has always been one of the keys to trading longevity. Now you can understand how the greats have used that information and more importantly how you can use that information! I highly recommend Michael Covel’s Trend Following.
CTA & Author of “The Trading Systems Toolkit”
Trend Commandments Endorsements & Reviews
An outstanding book [Trend Commandments] for anyone who wants to become rich by trading markets. Today, government regulations and fiscal and monetary policies are badly distorting financial markets. Covel accurately explains why, in this ‘manipulated’ financial environment, you should never expect markets to move as you wish or expect. Rather, disregard your fundamental beliefs and simply follow the trend. Highly recommended!
Managing Director, Marc Faber Ltd.
Editor, ‘Gloom Boom & Doom Report’
If you are even thinking of a career in trading, put down all the other books. Buy this one [Trend Commandments]. Read it. Now you can start your career.
Managing Director, Formula Capital
Fire up the barbecue. Michael Covel skewers the sacred cows of Wall Street with tasty bite-sized bits of the truth about what it really takes to succeed in trading and life. Wide-ranging, irreverent, revealing, eminently quotable, and right on the money.
Market Wizard Trading Coach
A rapidly moving, non-technical, and outside-the-box effort that smartly captures the essentials of trend following.
Chairman and CEO, Computer Trading Corp
Michael Covel’s Trend Commandments is full of practical wisdom in bite-size portions on the benefits of trend trading–written in a straightforward storytelling format. It’s definitely one to add to your financial bookshelf.
Signal Financial Group
Michael Covel is the very best at explaining the concepts of successful trend following in plain English. I’m certain you’ll be a successful trader if you follow the ideas he outlines in Trend Commandments. This book (and his previous two!) are required reading for new employees in my office.
Investors have experienced two bear markets in the last decade. This has led to rising volatility, uncertainty, and investor angst. For some it has been a lost decade, but for trend traders it has been a decade of opportunity. Trend Commandments helps you focus on what matters most: the trend of the markets, whether up or down. You can profit from either. Trend Commandments is essential reading for those who have the desire to thrive and survive in an era of fast-paced trending markets.
CEO, Chief Investment Strategist, PFS Group
Buy and hold has been a difficult investment system for investors for a decade. In Trend Commandments, Covel challenges readers to think differently and question their beliefs about market ‘truths’ ingrained in them for years. Forewarned, you just may never see the world the same way again.
Cambria Investment Management
Covel’s Trend Commandments offers a breezy rumination on what is right about trend following and what is wrong about conventional trading approaches.
Author of Market Wizards and Schwager on Futures series
The Little Book of Trading Endorsements & Reviews
In The Little Book of Trading, Michael Covel has collected many gems of wisdom from some of the great traders of our time. After reading this book and piecing together all of the commonalities therein, you’ll begin to understand what it takes to be successful in the markets. Ignore these key truths and one day you’ll watch your account disappear.
Van K. Tharp, Ph.D.
President, The Van Tharp Institute
The Little Book of Trading reveals the secrets from trend-following insiders giving you the freedom to trade all markets: interest rates, copper, currencies, stocks — you name it! Covel encourages you to take that TV blaring CNBC and throw it right out the window. Charts cut the noise.
Best-selling author of Demise of the Dollar
Executive Publisher, Agora Financial, LLC
Michael Covel’s unique insight into trading is invaluable. Both novice and experienced traders can benefit from Michael’s thorough knowledge of markets around the globe. The Little Book of Trading is a must read for serious investors.
Louis G. Navellier
Chairman and Founder, Navellier & Associates, Inc.
Imagine being in the circle of trust of some of the greatest traders of all time, knowing what made them successful and having them share heartfelt advice. Though the eyes of Michael Covel in The Little Book of Trading, you will truly feel this experience.
Murray A. Ruggiero Jr.
Contributing Editor, Futures Magazine
VP Research and Development, TradersStudio Inc.
Michael Covel’s Little Book of Trading is a must-read guide to help you succeed in the shark-infested waters of the investment world.
Cullen O. Roche
Founder and CEO, Orsus Investments, LLC
Proprietor of Pragmatic Capitalism
Table of Contents
Stick to Your Knitting
Gary Davis, Jack Forrest, and Rick Slaughter
Someone’s Gotta Lose for You to Win
No Guts, No Glory
In a Land Far, Far Away from Wall Street
Think Like a Poker Player and Play the Odds
Stand Up, Dust Yourself Off, and Keep Going
Throw Away the Fundamentals and Stick to Your Charts
Study Hard and Get an A+
You Can’t Know Everything
Eric Crittenden and Cole Wilcox
Make It Work Across All Markets
Stay in the Moment of Right Now
Sing the Whipsaw Song
The Complete TurtleTrader Endorsements & Reviews
Most beat-the-market books aren’t worth my shelf space. This one is.
Bloomberg (James Pressley)
If you want to beat the market, you have to do something different from what everyone else is doing, and you have to be right. In this fascinating and instructive book, Michael Covel tells how a group of novice traders used a system that generated trades that were both different and right, and which made them a lot of money. If you want to understand the real world of trading, read this book.
Bill Miller, Chairman and Chief Investment Officer
Legg Mason Capital Management
Because Covel so clearly lays out these ingredients of success, his book is relevant not just to trend traders, but to anyone who aspires to greatness in the markets. The message is clear: to win, the odds must be in your favor, and you must have the fortitude to keep playing, remain consistent, and compound your edge. That’s a formula for success in any field of endeavor, which may be why the Turtle story finds universal appeal.
“I did enjoy the book…I hope it’s doing well for you.”
“The book was wonderful…”
“Liked it. Congratulations on a job well done.”
“Book is very good…thank you for going for the truth and objectivity.”
“All in all, not bad. I wish it had never been done and I wish I were not in it, but I know that you were definitely going to do it, so I figured I would try to get the truth out as much as possible. By and large, it worked that way.”
“I can say that after hearing the turtle story many times from many of the people that are part of the story and after reading many articles about such story, this is by far the most entertaining, inspiring, extensive, and honest story of the turtles I have ever read.”
Second Generation Turtle
Associate with original Turtle Paul Rabar
- Brett Steenbarger Review
- The Hindu (review)
- Michael Nystrom (review)
- SFO Magazine Top 10 Books
- Trader Monthly Article
- Deraktionaer.de Interview (German)
- Bloomberg Review
- Market Technicians Association Review
- Your Trading Edge Magazine Review
- SFO Magazine Review
- Bill Miller (Legg Mason) Review
- Mark Lamendola Review
More Trend Following Endorsements & Reviews
Michael Covel reveals the real secret about trading – that there is no secret. His points are peppered with wisdom from experts across the industry.
President, MESA Software
Trend Following by Michael Covel? I’m long this book.
Bob Spear, Annapolis, MD
Developer of Trading Recipes Software
…an engrossing and educational journey through the principles, pitfalls, players and psychology of aggressive technical trading of the investment markets. Rich in its wisdom and historical study.
President, Signalert Corporation
…I can safely say that this book is a classic and a must-read for anybody involved with the markets — even those of you who are just blindly plowing money into your retirement accounts…Covel takes no prisoners in showing why trend following is the superior trading methodology. He lays waste to all other styles of investing/trading — ‘buy & hold’ (Warren Buffett fans will just love chapter nine…The book illustrates how that methodology [Trend Following] has allowed them to make huge profits from some of the greatest financial disasters of modern times such as the Enron debacle, the collapse of Long Term Capital Management, the 1997 Asian Contagion, the 1987 stock market crash, or the popping of the NASDAQ bubble.
[Trend Following] covers how to get in and out of a trade and how much money to risk, in addition to many other helpful hints on how to best profit from the trend.
Technical Analysis of Stocks and Commodities Magazine
July 2004 Issue
Trend Following is a great resource for all future successful traders. It covers the four bases of successful trading using real-world success stories: Follow the trend of the market; don’t waste time trying to predict it. Have sound money management rules, especially a strict loss-cutting policy. Be disciplined by implementing proven trading rules. Have the patience to wait for the right opportunity. Michael Covel has hit for the cycle with Trend Following.
Author of Lessons from the Greatest Stock Traders of All Time
This is an excellent book that I highly recommend…No, there are no secrets in it, but it’s extremely well written and contains many nuggets of knowledge from a multitude of top traders. I enjoyed it more than the Market Wizard books. It earned a spot in my 10 all-time favorite trading books.