Quite useless collection of information with few or no relevance. No trading issues, no theories, just data and celebration of big names' success. Stay away.
There is a lot I want to say about this book.
First of all, I only give it a 2 star. Although this is a national bestseller. I can only say Michael the author is a marking genius rather than a good trader or a good person know well about trading. Yes, he did collect a lot of examples and mottos about trading. But what is really mean to you? What is teach you about trading? Nothing.
For example, old saying such as:"cut your losses and let your profit run", "trend is your friend", "following the trend, don't predict the market" etc. He mentioned these all again and again in his book. But he never give a clear definition about trend, trend following and trend follower. What are they really? What is a trend? How to find a trend? how to do when the trend start and when to end? how to follow it, how to stop lost?
It is funny as you look at his book subtitle was "How great traders make millions in up or down markets". But in his book, you can only find great traders make millions, there is a lot of examples and their equity growth numbers, but how?
Chapter 1: Trend Following: "Don't try to guess how far a trend will go. You can't. Just follow price!" Hmm, but how? saw a green bar buy and saw a red one sell? and he talked about the core concept about the trend following is exit your lost fast. Yes, he only give you a word, "FAST". I was wondering he ever trade himself or ever put a trade on? I think the answer is no. Because he is very busy selling his trading book and seminars etc. and have never had a time to actual trade.
Chapter 2: Great Trend Followers: A lot of great traders, their names, their performance figures, their mottos. None of this told you systems they have been used, their trading methods. And as we can say that the author put all these great traders name in as trend followers. It is kinda of like saying white horses are horses. You know what I am saying? all trades who had great performance in the past are trend followers, whatever which method they used for trading.
I just can't waist my time to talk about his chapters anymore. If you are interesting waisting your time, or if you are doing trading and lost a lot of money and want to find some spirit support rather than improve your trading technic , maybe this is a good book for you. It tells you why you failed trading, because you are not a trend followers. What you should do is trend following.lol
You are wondering why I still give it a 2 star rather 0. Because although the main part of his book was very bad, the appendices seems ok to me. He finally talked about he to define a trend in his appendix A:"Several basic concepts exist to define a trend. The most common ones are as follows:
Donchian channels (high/low breakouts).
Bollinger Bands (standard deviation breakouts)."
Famillar with these 3 concepts? Yes, that is the only thing in his book a little bit useful, the 3 very old technical indicators and their systems.
As we can draw a conculsion that the author Michael Covel is a good story teller or he is a good teacher in trading bussiness who ever told you how to trade and will never reveal it.
For me, this is the truth. Trading is zeo-sum game. That means you win someone's losses. If a book can really tell you how to success in trading or how to make millions in up or down markets. Then people with reading capacity will all become millionairs....Continua