Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Wiley Trading)

The way I see it, you have two choicesyou can do what I did and work for 30plus years, cobbling together scraps of information, seeking to create a moneymaking strategy, or you can spend a few days reading Covels Trend Following and skip that threedecade learning curve.

Larry Hite, profiled in Market Wizards

Michael Covels Trend Following: Essential.

Ed Seykota, profiled in Market Wizards

Trend Following by Michael Covel? Im long this book.

Bob Spear, Mechanica

[Trend Following] 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, PhD, profiled in Market Wizards

[Trend Following] 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.

Tom Basso, profiled in The New Market Wizards

I am very pleased to see Michael Covels updated version of Trend Following; one of my favorite trading books out of the hundreds that I have read. He has doubled the size of this edition and expounded on the process used by legendary trend following traders. The traders in this book made millions by getting on the right side of trends and managing risk in diversified markets. This book should be studied by any serious trader or investor.

Steve Burns, NewTraderU.com

Trend Following: Definitely required reading for the aspiring trader.

David S. Druz, Tactical Investment Management

A mandatory reference for anyone serious about alternative investments.

Jon Sundt, Altergris

Michael Covel does an excellent job of educating his readers about the littleknown opportunities available to them through one of the proven best hedge fund strategies. This book is like gold to any smart investor.

Christian Baha, Superfund

Covel has created a very rare thinga welldocumented and thoroughly researched book on trend following that is also well written and easy to read. This is one book that traders at all levels will find of real value.

John Mauldin, Mauldin Economics

I think that Michaels 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.

Marc Faber
Managing Director, Marc Faber Limited
Editor, Gloom, Boom & Doom Report

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The Wiley Trading series features books by traders who have survived the markets ever changing temperament and have prosperedsome by reinventing systems, others by getting back to basics. Whether a novice trader, professional or somewhere inbetween, these books will provide the advice and strategies needed to prosper today and well into the future.

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Fifth Edition

Michael W. Covel

Cover design: Wiley

Copyright 2017 by Michael W. Covel. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

The fourth edition of Trend Following was published by FT Press in 2009.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate percopy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 7508400, fax (978) 6468600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 7486011, fax (201) 7486008, or online at http://www.wiley.com/go/permissions.

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Library of Congress CataloginginPublication Data:

Names: Covel, Michael W., author.

Title: Trend following : how to make a fortune in bull, bear and black swan markets / Michael W. Covel.

Description: Fifth edition. | Hoboken : Wiley, 2017. | Series: Wiley trading | Revised edition of the authors Trend following. | Includes bibliographical references and index.

Identifiers: LCCN 2016056666 (print) | LCCN 2016057575 (ebook) | ISBN 9781119371878 (hardback) | ISBN 9781119371915 (ePDF) | ISBN 9781119371908 (ePub) |

Subjects: LCSH: Investments. | Stocks. | BISAC: BUSINESS & ECONOMICS / Commodities.

Classification: LCC HG4521 .C82 2017 (print) | LCC HG4521 (ebook) | DDC 332.6dc23

LC record available at https://lccn.loc.gov/2016056666

Get on the motorbike. Relax. Cm n Anh.

He was imprenably armored by his ood intentions and his inorance.

Graham Greene, The Quiet American

Yesterday dont matter if its one.
The Rollin Stones, Ruby Tuesday

True story: Not long after the financial crisis of 200809, I was dragged to a posh Long Island country club for some terribly boring social event (those tony golf places are not my idea of fun). On my way out the door, I was introduced to someonelets just call him