Self-Control is the Path

Thanks to Ed Seykota (Seykota.com) for the link.

“People always get excited when they hear about this strategy called ‘covered call writing.’ They like the idea of picking up income – who doesn’t – but rarely grasp the significance of the fact when the train leaves the station heading north, they won’t be on it.”
Don Chance

Trend Following: How Great Traders Make Millions in Up or Down Markets is now the #9 bestseller at Amazon for all business and investing books. Thanks again for the support!

Read: http://www.forbes.com/forbes/2004/0607/113_print.html

Intrade is a trading exchange for politics, current events, financial indicators & other unique contracts…

Read: http://mises.org/fullstory.asp?control=1520

A long time author in the field of technical analysis, John Ehlers offered this endorsement of Trend Following: How Great Traders Make Millions in Up or Down Markets:

“Michael Covel reveals the real secret about trading – that there is no secret. His points are peppered with wisdom from experts across the industry.”
John Ehlers

I thank John for talking the time to offer feedback!

Trend followers go to the market to trade trends. However, not all market players are trying to do the same thing. Fannie Mae could be making change in their bond portfolio. A major investment bank could be trading a strategy that will not tolerate volatility. Bottom line people trade for different reasons for different goals. George Crapple, a trend follower with 25+ years in experience, makes the point:

“So while it may be a zero some game, a lot of people don’t care. It’s not that they’re stupid; it’s not speculative frenzy; they’re just using these markets for a completely different purpose.”
George Crapple
Millburn Ridgefield

I am honored to offer an endorsement from Robert (Bucky) Isaacson for Trend Following:

“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

Bucky currently runs Future Funding Consultants and is a member of the Board of Directors of the National Introducing Brokers Association. A true pioneer, in the early 1970s he teamed with Keith Campbell and Chet Conrad to help launch one of the first trend following commodity funds. Today, Keith Campbell’s company is considered one of the most successful trend following firms. Futures Magazine was blunt about Isaacson’s pioneering role:

“There also was the launch of commodity funds by Richard Donchian and an industry that was developed by a small band of traders, including Robert “Bucky” Isaacson, Keith Campbell…”
Futures Magazine
February 2002

In USA today there is a piece about the price of gas going up and here is what the so-called expert had to say:

“Some oil analysts say the worst for the climb in gasoline costs is probably over, provided oil costs don’t increase much more”.

How in the world would you make a trading decision from this analyst? Do you get in? Get out? How much do you buy or sell of gasoline if you are trading it? Does anyone really believe this analyst (or any analyst) can predict anything? Analyst comments like these were supposed to be dead and buried with the dot-com bubble.

I have been asked: “will everyone like your book?”

There are definitely some that will not like the book:

1.) Wall Street businesses built off commissions or buy and hold lore.
2.) Warren Buffett true believers.
3.) Students of Richard Dennis that failed to find success.
4.) Proponents of market prediction.

Ed Seykota was one of many participants in the Trend Following book project. His Trading Tribe contributions (in the book) are gentle reminders of what he feels to be the keys to great trading.

You can read more about Seykota’s tribe here.