Trend Following, Revised and Extended Fifth Edition: How to Make a Fortune in Bull, Bear and Black Swan Markets | Michael W. Covel

Want to take the financial journey to a new investing philosophy that might very well affect the rest of your moneymaking life? No one can guarantee the yellow brick road, but Michael Covel promises the red pill will leave you wide freaking awake.

Trend Following reveals the truth about a trading strategy that makes money in up, down and surprise markets. By applying straightforward and repeatable rules, anyone can learn to make money in the markets whether bull, bear, or black swan—by following the trend to the end when it bends. In this timely reboot of his bestselling classic, Michael Covel dives headfirst into trend following strategy to examine the risks, benefits, people, and systems. You’ll hear from traders who have made millions by following trends, and learn from their successes and mistakes—insights only here. You’ll learn the trend philosophy, and how it has performed in booms, bubbles, panics and crashes. Using incontrovertible data and overwhelming supporting evidence, with a direct connection to the foundations of behavioral finance, Covel takes you inside the core principles of trend following and shows everyone, from brand new trader to professional, how alpha gets pulled from the market.

Covel’s newest edition has been revised and extended, with 7 brand new interviews and research proof from his one of kind network.  This is trend following for today’s generation. If you’re looking to go beyond passive index funds and trusting the Fed, this cutting edge classic holds the keys to a weatherproof portfolio.

• Meet great trend followers learning their rules and philosophy of the game
• Examine data to see how trend following excels when the you-know-what hits the fan
• Understand trend trading, from behavioral economics to rules based decision-making to its lambasting of the efficient markets theory

• Compare trend trading systems to do it yourself or invest with a trend fund

Trend following is not prediction, passive index investing, buy and hope or any form of fundamental analysis. It utilizes concrete rules, or heuristics, to profit from a behavioral perspective. Trend Following is clear-cut, straightforward and evidence-based and will secure your financial future in bull, bear and black swan markets. If you’re finally ready to profit in the markets, Trend Following is the definitive treatise for a complex world in constant chaos.

Editorial Reviews

From the Inside Flap

TREND FOLLOWING

"When it is a question of money, everyone is of the same religion."
—Voltaire

Want to take the financial journey to a new investing philosophy that might very well affect the rest of your moneymaking life? No one can guarantee the yellow brick road, but Michael Covel promises the red pill will leave you wide awake.

Trend Following reveals the truth about a trading strategy that makes money in up, down, and surprise markets. By applying straightforward and repeatable rules, anyone can learn to make money in the markets—whether bull, bear, or black swan—by following the trend to the end when it bends. In this timely reboot of his bestselling classic, Michael Covel dives headfirst into trend following strategy to examine the risks, benefits, people, and systems. You'll hear from traders who have made millions, and learn from their successes and mistakes—insights you'll only find here. You'll learn the trend philosophy and how it has performed in booms, bubbles, panics, and crashes. Using incontrovertible data and overwhelming supporting evidence, with a direct connection to the foundations of behavioral finance, Covel takes you inside the core principles of trend following and shows everyone, from brand new trader to professional, how alpha gets pulled from the market.

Covel's newest edition has been revised and extended, with seven brand new interviews and research proof from his one-of-a-kind network. This is trend following for today's generation. If you're looking to go beyond passive index funds and trusting the Fed, this cutting-edge classic holds the keys to a weatherproof portfolio.

• Meet great trend followers and learn their rules and philosophy of the game
• Examine data to see how trend following excels when the you-know-what hits the fan
• Understand trend trading, from behavioral economics to rules-based decision making to its lambasting of the efficient market theory
• Learn trend trading philosophy and do it yourself or invest with a trend following fund

Trend following is not prediction, passive index investing, buy and hope, or any form of fundamental analysis. It utilizes concrete rules, or heuristics, to profit from a behavioral perspective. Trend Following is clear-cut, straightforward, and evidence based. If you're finally ready to profit in the markets, Trend Following is the definitive treatise for a complex world in constant chaos.

From the Back Cover

"Michael Covel's Trend Following: Essential."
—Ed Seykota, profiled in Market Wizards

"Covel's Trend Following is the must-read for all investors. Why? Because every investor needs a trend to make money, and when the trend shifts investors need to follow it. Read it."
—Wesley R. Gray,PhD, CEO, Alpha Architect, and author of Quantitative Momentum

"While enjoying this book, be sure to look up another resource from Covel–his remarkable podcast. Michael has a gift for interviewing, and it is fun and educational to follow him into the offices of many serious traders."
—Dr. Alexander Elder, Author, The New Trading for a Living

"Covel's Trend Following has become an investment classic and a must read for anyone who wants to better understand how to profit from the financial markets using systematic and unbiased approaches."
—Cullen Roche, Founder, Orcam Financial Group, LLC

"Trend following: If it is going up, buy it. If it is going down, sell it. How could something seemingly so simple be so controversial? The answer lies in the definitions: What does going up mean? Going down? What's a trend? What's a turn? These questions have a wide variety of answers, largely dependent on the goals and risk/reward preferences of the answerer. In Trend Following Mr. Covel covers the waterfront. You'll find many definitions of trend following here, each with its advocates. You will be able to compare and contrast approaches and perhaps find one that suits you. At the very least, after reading this book you'll have the territory mapped and understand what trend following has to offer."
—John Bollinger, Founder, www.BollingerBands.com

"While financial television obsessively tracks every tick in the stock market, Michael Covel's Trend Following continues to draw attention to a strategy, diversified trend following, that generates unique returns for disciplined investors with a long-run time horizon."
—Tadas Viskanta, Founder and Editor, Abnormal Returns; Author, Abnormal Returns: Winning Strategies from the Frontlines of the Investment Blogosphere

About the Author

Michael W. Covel searches. He digs. He goes behind the curtain to reveal a state of mind the system doesn't want you in.
Michael teaches beginners to seasoned pros how to generate profits with straightforward and repeatable rules. He is best known for popularizing the counterintuitive and controversial trading strategy, trend following. His perspectives have garnered international acclaim and have earned him invitations with a host of organizations: China Asset Management, GIC Private Limited (Singapore), BM&F Bovespa, the Managed Funds Association, Bank of China Investment Management, the Market Technicians Association, and multiple hedge funds and mutual funds. He also has the distinction of having interviewed five Nobel Prize winners, including Daniel Kahneman and Harry Markowitz, on his Trend Following podcast—which now exceeds 500 episodes and 5 million listens.
Michael's consulting clients include individual traders, hedge funds, sovereign wealth funds, and institutional investors in more than 70 countries. He splits his time between the United States and Asia.