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Asymmetric Investment Returns

Book Review: Trend Following: How Great Traders Make Millions in Up or Down Markets by Michael Covel Thumbnail

Book Review: Trend Following: How Great Traders Make Millions in Up or Down Markets by Michael Covel

Michael Covel’s Trend Following explores the systematic strategy of capturing long-term price trends to achieve success across various market environments. Covel reveals how disciplined investment portfolio managers and traders focus on actual price movement rather than predictions, making the strategy adaptable and effective in up or down markets. With historical examples, including the successes of the Turtle Traders and figures like Ed Seykota, Covel demonstrates that trend-following relies on straightforward principles, such as identifying trends, controlling risk, and maintaining emotional discipline. A trend-following approach can result in asymmetric investment returns by aligning with market trends and capturing gains while managing risk effectively.

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