Asymmetric returns: Managing downside for greater upside

Howard Marks is one of the most respected figures in the investment world, known for his clear, thoughtful insights into the complexities of markets and risk. His book, The Most Important Thing Illuminated, is an expanded and enhanced version of his original work, The Most Important Thing.

The Most Important Thing: Uncommon Sense for the Thoughtful Investor is an essential read for anyone interested in developing a robust, long-term investment strategy.

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.