Trend Commandments: Trading for Exceptional Returns [Hardcover]

Michael W. Covel (Author)

Book Description

Publication Date: June 24, 2011 | ISBN-10: 0132695243 | ISBN-13: 978-0132695244 | Edition: 1

Do you ever think the stories you hear about great trading, and the gains produced, sound like luck?  Do you ever wonder if there is a real method and philosophy behind the success stories?  The concepts condensed into Trend Commandments: Trading for Exceptional Returns were gleaned from Michael Covel's 15 years of pulling back the curtain on great trend following traders.  It is a one of a kind money making experience that forever lays to rest the notion that successful trading is akin to winning the lottery.  Winning has a formula, as does losing.  Covel nails both head on.  Getting rich is a fight; make no mistake about it, but at least now with Trend Commandments you have a primer that allows you to crack the code of the winners.

Editorial Reviews

From the Back Cover

“An outstanding book for anyone who wants to become rich by trading markets. Highly recommended!”

--Marc Faber, Managing Director, Marc Faber Ltd., and Editor, “Gloom Boom & Doom Report”

 

“If you are even thinking of a career in trading, put down all the other books. Buy this one. Read it. Now you can start your career.”

--James Altucher, Managing Director, Formula Capital

 

“A rapidly moving, non-technical, and outside-the-box effort that smartly captures the essentials of trend following.”

--Peter Borish, Chairman and CEO, Computer Trading Corp

 

“Covel offers a breezy rumination on what is right about trend following and what is wrong about conventional trading approaches.”

--Jack Schwager, Author of Market Wizards and Schwager on Futures series

 

“Trend Commandments is definitely one to add to your financial bookshelf.”

--David Stendahl, Signal Financial Group

 

“I’m certain you’ll be a successful trader if you follow the ideas Covel outlines in Trend Commandments.”

--Steve Sjuggerud, DailyWealth

 

“Trend Commandments is essential reading for those who have the desire to thrive and survive in an era of fast-paced trending markets.”

--Jim Puplava, CEO, Chief Investment Strategist, PFS Group

 

“Covel challenges readers to...question their beliefs about market ‘truths’ ingrained in them for years. Forewarned, you just may never see the world the same way again.”

--Mebane Faber, Cambria Investment Management

 

“Wide-ranging, irreverent, revealing, eminently quotable, and right on the money.”

--Charles Faulkner, Market Wizard Trading Coach

 

In the bestsellers Trend Following and The Complete TurtleTrader, Michael W. Covel introduced trend following trading with painstaking detail and real-life stories. This new book offers a 360-degree vision designed to teach, compare, contrast, inspire, and push you to trend trading success.

 

Up? Down? It doesn’t matter. There are always trends, and that means there are always profits. Many of the world’s top traders are trend followers: That’s key to a fortune. You can do it, too--and now you have the rare perspective it takes to be a trend following winner.

 

One bite-size concept and illustration at a time, Covel shows how you can get ahead in an age of nonstop financial crisis and deepening instability. Winning means the right techniques, psychology, philosophy, and even skepticism--it’s all part of the learning, then earning process.

 

Trend Commandments delivers real moneymaking insights developed and cultivated from 15 years of behind-the-scenes research--intellectual access you can’t fake. It’s the most digestible and one-of-a-kind trend trading book ever written. 

• Reap the spoils when domestic and global markets crash...
  ...and find big waves to ride even when people aren’t panicking
•  Don’t waste time trying to predict the future...
  ...learn how to think and react to what is actually happening
•   Decipher the ‘noise’ in a sea of competing voices...
  ...let go of ‘value,’ mutual funds, the Buffett legend, and Goldline (to name a few)
•  Listen to the market. It always tells the truth...
  ...and the “price” is the only true trading reality you can trust

About the Author

Michael W. Covel serves as President of Trend Following (TurtleTrader), a privately owned research firm. In 1996, Covel colaunched TurtleTrader.com. It has attracted millions of visitors.

 

His first book is Trend Following: How Great Traders Make Millions in Up or Down Markets (FT Press, Apr. 04, Nov. 05, Feb. 07, and Feb. 09). This must-have classic has been translated in German, Japanese, Chinese (Traditional and Simplified), Korean, French, Arabic, Turkish, Portuguese, and Russian.

 

His second book, The Complete TurtleTrader: The Legend, the Lessons, the Results (Collins, Oct. 07 and Feb. 09), is the only narrative account of trader Richard Dennis and his student traders, the Turtles. It has become the definitive book on the subject and has been translated in German, Japanese, Chinese (Traditional and Simplified), Korean, and Russian.

 

His first documentary film is Broke: The New American Dream. It explores human behavior and trend following during the 2007-2009 market crash and premiered on The Documentary Channel fall 2009. The film was shot in 13 major cities on three continents. Top traders Larry Hite, Jim Rogers, David Harding, Mark Mobius, and Bill Miller appear. Nobel Prize winners Harry Markowitz and Vernon Smith also appear.

Product Details

• Hardcover: 288 pages
• Publisher: FT Press; 1 edition (June 24, 2011)
• Language: English
• ISBN-10: 0132695243
• ISBN-13: 978-0132695244
• Product Dimensions: 6.4 x 1 x 9.3 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 3.8 out of 5 stars  See all reviews (151 customer reviews)
• Amazon Best Sellers Rank: #218,551 in Books (See Top 100 in Books)
  • #43 in Books > Business & Investing > Investing > Futures
  • #66 in Books > Business & Investing > Investing > Options
  • #79 in Books > Business & Investing > Investing > Commodities

More About the Author

Michael Covel passionately teaches the lessons of the great traders who have made their fortunes over the last four decades. Forget Buy and Hold and CNBC; those are not Michael's game. His subject of choice is an obscure trading style called 'trend following trading' that has produced untold millionaires and a few billionaires. It is a style of trading ignored by the mainstream press, all universities and much of Wall Street. Michael is now considered the point person on trend following trading.

In 1996 Michael co-launched a website titled TurtleTrader.com®. It has attracted millions of visitors and thousands of clients all looking for insights into trend following trading. The journey to uncover the secretive world of the most successful money makers around, cracking their 'code' so to speak, honed Michael's investigative skills and built TurtleTrader.com®.

Following on the success of TurtleTrader®, Michael's first book Trend Following: How Great Traders Make Millions in Up or Down Markets (FT Press, Apr. 04, Nov. 05, Feb. 07 and Feb. 09) hit the streets. It profiled great trend following traders and explained trend following in print for the first time. It quickly became a bestseller and has sold over 100,000 copies. It is available in German, Japanese, Chinese (Complex and Simplified), Korean, French, Arabic, Turkish and Russian. The book struck a chord with individual and professional investors alike.

Michael's second book The Complete TurtleTrader: The Legend, the Lessons, the Results (Collins, Oct. 07 and Feb. 09) is different. It is the definitive behind the scenes look at a real life trading legend. It is a narrative account of super-trader Richard Dennis and his student traders nicknamed the 'Turtles'. You think trading success only happens for people born with a silver spoon? This book will prove you wrong! It is the true story of nurture trumping nature and has become an inspirational lynch-pin for tens of thousands.

Following his two books Michael directed his debut documentary film Broke. It premiered on 'The Documentary Channel' in October 2009. It explores human behavior (read: behavioral finance) during the 2007-2009 market crash. It is Michael's 75,000 mile odyssey through a Tokyo fish market, a Virginia sheep farm, a lottery store and Las Vegas and Macau poker tables all to learn how and why we make so many wrong financial decisions.

Michael and his team shot the film in 13 major cities and packed it with big time names in the trading world (Larry Hite, Jim Rogers, David Harding, Mark Mobius, and Bill Miller to name a few). Michael also conducted face-to-face interviews with legendary Nobel Prize winners Dr. Harry Markowitz and Dr. Vernon Smith. Michael's film is a non-partisan, timeless and common sense message that everyone can embrace.

www.michaelcovel.com/about

Most Helpful Customer Reviews

21 of 21 people found the following review helpful

1.0 out of 5 stars All talk no substance August 27, 2012

By Thirst for knowledge

Format:Hardcover|Amazon Verified Purchase

I was certainly looking forward to receiving this book when I ordered it. As a stock and options trader, I was looking for a book that would help me better identify and analyize trends before investing, as well as entry and exit points. Did this book provide any of that information? The answer is "NO". This book is obviously written by an egotistical individual that simply likes to hear themself talk and ramble on. What's worse, it appears that he has found a way to con people into listening to his dribble.

Obviously, investing long or short based upon the current market trend is one of the most accepted ways of investing. It is not something new or novel, that is distained by many investors, as this author would have you believe. In addition, there is other ways to analyize and play the markets that are also successful. However, this author appears to simply want to trash every other investment method and spend an inordinate amount of time patting himself on the back.

The author's dribble would not be so bad if at least he provided some concrete information to the reader on how to do better trend analysis. However, no where in this book is a reader going to find any information on how the author actually implements and follows such an investment methodology.

Bottom line, don't get ripped off. The sole purpose of this book is obviously to make the author money, but let me tell you it certainly will not convey to you as a reader even one piece of useful information. This is the first product review I have ever written, and I am writing it in hope that other individuals do not waste their money and buy this book.

83 of 96 people found the following review helpful

5.0 out of 5 stars How to be a Market Wizard June 30, 2011

By Steve Burns TOP 1000 REVIEWERVINE™ VOICE

Format:Hardcover|Amazon Vine™ Review (What's this?)

This is a very valuable book because it distills the wisdom of some of the world's greatest traders into one place. Michael Covel has spent 15 years studying the methodology, risk management, and psychology of legends like Ed Seykota, Larry Hite, previous turtle traders, Paul Tudor Jones, Salem Abraham and many others. He has also studied the entire history of trend following and the writings of historical figures like Jesse Livermore, Richard Donchian, and Charles Dow.

This book is compilation of the principles that real life trend followers used to make and keep millions, and for some billions in the market. Any trader should be able to pick up this book and get inside the minds of these market wizards.

The problem is that many people do not "get" trend following. They ignore the success of these traders and want to opine about how it does not work, or complain that the draw downs are to large, or that these are only the "survivors" what about the trend following losers? I would like to say these are not the authors opinions these are proven principles, the success of this style of trading has been proven, draw downs occur for all traders (except for frauds like Bernie Madoff), and I do not know of any trend followers who blew up that used proper risk management.

I can say from personal experience of successful trading and my own track record of capital growth at a cumulative total of over 200% in an 8 year period when the market was essentially flat, that trend following works. The principles of Covel's book Trend Following was a major early influence for me. The principles I learned from Covel's book along with the Nicolas Darvas books showed me the importance of reversing my positions and stopping losses when a trend reversed. I went to cash in January of 2008 in my main two accounts as the trend reversed and that allowed me to avoid the entire market meltdown.

This book is easy to read and understand and gives you all the rules you need to begin to build your own trading plan. It does not try to predict the future or tell you what to trade, it shows you HOW to trade successfully.

The principles of this book match my own book. I have also spent many years studying the most successful traders and read over 165 of the top trading books on the market and traded successfully for 12 years. Michael Covel and myself have come to the same conclusions on what leads to success in the markets.

1. Do not try to predict, react to actual price movements.
2. Keep your risk at no more than 1% or 2% of total equity per trade to avoid the risk of ruin.(This is a baseline, risk varies by system)
3. Always trade in the direction of the immediate trend.
4. Always have an exit strategy before you enter a trade.
5. Trade the probabilities not opinions or hunches.
6. In every trade have a limited down side but an unlimited upside.
7. You must have the discipline to follow your tested system 100%.
8. The only people that really always win with the buy and hold strategy is mutual funds by charging management fees.
9. You must be committed to your trend trading strategy for the long term.
10. Watch financial news networks for news and entertainment, read Trend Commandments to learn how to trade.

23 of 26 people found the following review helpful

5.0 out of 5 stars Covel Hits the Nail on the Head July 15, 2011

By Grady Harp HALL OF FAMETOP 50 REVIEWERVINE™ VOICE

Format:Hardcover

Anyone who has read any of Michael W. Covel's books knows from the outset that this newest book TREND COMMANDMENTS is going to be not only a learning experience but a very supportive tome of advice and reassurance about a subject few of us understand. Having read 'The Complete TurtleTrader: How 23 Novice Investors Became Overnight Millionaires' this reader jumped at the chance to see what else Covel has up his sleeve.

Trend Trading may seem like yet another of those big money terms that leaves the bulk of us on the outside. But as presented by Covel it is understandable as a concept and accessible as a means of approaching the money market. By definition, 'Trend following is an investment strategy that tries to take advantage of long-term moves that seem to play out in various markets. The strategy aims to work on the market trend mechanism and take benefit from both sides of the market, enjoying the profits from the ups and downs of the stock or futures markets. Traders who use this approach can use current market price calculation, moving averages and channel breakouts to determine the general direction of the market and to generate trade signals. Traders who employ a trend following strategy do not aim to forecast or predict specific price levels; they simply jump on the trend and ride it.'

And that is exactly what Covel encourages in this well-written book. He offers insights into the strategies that the big moneymakers use to be true winners 'grounded in real performance results and not squishy opinions.' In these chaotic economic times it is comforting to read a book by an informed man who tells it like it is and follows those realities with his own brand of optimism and self-sufficiency. the book reads well, does not bog down with data charts that are page flippers for novices, but steadily stands behind our insecurities and creates positive transformations. Grady Harp, July 11