Is Trend Following for You?


Mr. Covel, thank you for sending the DVD with the trader interviews and additional information. I have been listening to your podcasts for a while now, read your book “The Little Book of Trading” and all of your prerequisite articles posted on your website. Additionally, I have read Seth Godin’s “Linchpin” and thank you for turning me on to his work. I have been a big fan of the self-improvement genre in general. I have also read Jack Schwager’s “Market Wizards.” At this point I don’t need to inundate myself further with proof of the efficacy of trend following (though I find it inspiring to do so). I was once shown the framework of a trend-following system used by a veteran trader and have been using that to manage ETF trends in our IRAs. As explained to me it was overly simplistic, and remains a work-in-progress for me to refine it. I am interested in your system packages as both a means to trade as well as a means to learn how a developed system works. Everything I have read, tells me that just adopting someone else’s system is difficult to trade (psychologically) because the trader himself did not participate in its development and thus cannot fully trust in its efficacy when the going gets tough. Does your package include any ongoing coaching or mentoring to help the trader through these hurdles? Who would do that and what is their experience?

My firm provides support via email to all clients. It is a process that has worked well since 1996. It is built into the Flagship price. The support is led by myself and will include direct interaction. The rules I teach can be adjusted in terms of portfolio selection, risk choice, etc. That alone is useful for personality differences. Some might go for more return, more risk. Others less. However, I believe the personality fit debates are overdone. See my 2nd book on the Turtles. Trend following can be taught. Richard Dennis saw it. I have seen it. If trend following is not for you, or whomever, I always wonder about the other supposed options.

You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content. Out April 24th 2017.