Top critical review
376 people found this helpful
A marketing driven success. More fluff than substance.
on December 24, 2009
I believe the positive review on this book are questionable. It was a huge waste of my time. The book has information about trend followers, who they are, why the do it, why they prefer following price over fundamentals, etc. I believe all that. It also talk about the fact trend follows have risk management systems, why they are important, but doesn't say what those systems are. Nor does it explain how to be a trend follower, what to look for, how to create a system, what risk management looks like. Its 200+ pages that says a lot of nothing. Sure, there are people that follow trends and make huge money doing it. But it does not say how to be a trend follower, or how the average person can buy commodities, FX, futures etc, the markets trend followers use. I hate books that promote stuff, but then don't actually tell you anything or how to do it. It does suggest that stocks are the hardest asset class to be a trend follower, but then an appendix had an interesting study that supported trend following in stocks. So who knows. But don't promote trend following if you're not going to then at least suggest resources of how the regular investor (the person this book is directed towards) can buy commodities, fx or futures and be a trend follower
If you're looking for strategies about trend following, when to buy or sell, which type of strategies to follow, which strategies successful trend follower use, don't buy this book. It does not disclose anything about trend following systems. I'll summerize...trend following exists, some people make huge money doing it, they view the world this way. That's it.
I firmly believe that this book is highly ranked because the author is a successful and smart marketing individual. He knows how to promote a product, but does not deliver on the value proposition that product offered. Not surprisingly, he also offers expensive on-line programs and class on trend following, a website, and even has an upcoming self-produced documentary. Its a full-court press to sell the idea of trend following, but does not share how. I suspect, hedge funds or CTAs buy this book and give it to clients because its marketing fluff that validates what they do, without saying how they do it. But that it does not make it a valuable book.
Admittely, I'm always skeptical of authors that write about investing. They are making money by selling books not by investing. For more interesting books written by authors that discuss investor, Jack Swagger's New Market Wizards at least provides more insight into the strategies successful investors follow. So too does the "little black book series".
Ironically, I am a trend following. Its something I believe does work for certain individuals. I was hoping to learn more about the strategies of rock-star trend followers, or ideas to help refine my investment approach or strategy. But this had zero information on the actually strategies, process, models, or even how to create a model.