The Trend Following Bible: How Professional Traders Compound Wealth and Manage Risk

Book description

A proven approach to trading success based on the best commodity trading advisors

Profiting from long-term trends is the most common path to success for traders. The challenge is recognizing the emergence of a trend and determining where to enter and exit the market. The Trend Following Bible shows individual traders and investors how to profit from this approach by trading like today's top commodity trading advisors.

In this book, author Andrew Abraham stresses the importance of a disciplined, consistent methodology, with stringent risk controls, that allows you to catch big trends, while limiting losses on unprofitable trades. By trading in this manner, he shows you how to successfully achieve market-beating returns over the long term and multiple your trading capital along the way.

  • Reveals exactly how top commodity trading advisors operate and how individuals can incorporate these methods into their everyday trading endeavors

  • Addresses key issues like position sizing and risk control, which are critical to trading success, but often underemphasized in other trading literature

  • Highlights how to effectively execute the trading strategies outlined

Engaging and accessible, The Trend Following Bible will put you in a better position to profit as you make more informed trading decisions.

Table of contents

  1. Cover Page
  2. Title Page
  3. Copyright
  4. Dedication
  8. INTRODUCTION: My Journey as a Trend Follower
    1. A Great Learning Lesson
    2. Have a Plan and Follow it
    3. A Lesson in Compounding: The Dentist
  9. CHAPTER 1: Get a Savvy Start
    1. Trading as a Profession
    2. Trend Following Is a Journey
    3. Make Sure You Are Properly Funded before You Start
    4. Establish Your Trading Goals
    5. Trading Pitfalls
    6. It's Your Choice
  10. CHAPTER 2: Getting the Most Out of This Method
    1. There Are No Secrets!
    2. Do You Want to Be Right or Make Money?
    3. Basic Tenets of Trend Following
    4. Compounding Your Way to Wealth
    5. Requirements for Successful Trend Following
  11. CHAPTER 3: Why Trend Following?
    1. Why Not Fundamental or Even Technical Analysis?
    2. My Answer: Trend Following
    3. You've Got to Love That Saying!
    4. Ed Seykota and Market Wizards
  12. CHAPTER 4: How Successful Trend Followers Trade
    1. The Trend Followers
    2. Gurus, Geniuses, and Legends Are Not the Way to Make Money!
    3. We Have Our Legends As Well
    4. The Biggest Mistake Traders Make
  13. CHAPTER 5: Managing the Risks when Trend Following
    1. Risk of Ruin
    2. The Exact Elements of Risk Management
    3. Choose Markets to Reduce Risk
    4. We Are Dealing with Uncertainty!
    5. Note
  14. CHAPTER 6: Your Complete Robust Trading Plan
    1. Trend Breakout and Trend Retracement
    2. If the Trade Starts Working
    3. The Calculation of Average True Range
    4. Trend Retracement Rules
    5. Just Do It
  15. CHAPTER 7: Trend Breakouts
    1. ArthroCare Corporation
    2. Baidu
    3. The 30-Year U.S. Government Bond
    4. The Canadian Dollar
    5. Feeder Cattle
    6. International Flavors and Fragrances
    7. Royal Bank of Canada
    8. TJX Companies
    9. Cotton Trade
    10. Eurodollar Chart
    11. Sugar
    12. Silver
  16. CHAPTER 8: Trend Retracements
    1. Don Steinitz's Approach
    2. Alexander Elder's Approach
    3. Step 1: Identify the Trend on the Higher Time Frame
    4. Step 2: Identify the Retracement/Pullback
    5. Step 3: Putting the Trade On
    6. Summary
    7. Protect Yourself
    8. Note
  17. CHAPTER 9: The Trend Follower Mindset
    1. Make It Second Nature
    2. Trend Following and Trading Is Not Retirement in a Box!
    3. What Makes a Successful Trend Follower?
    4. Sweet Simplicity
    5. Think Probabilities
    6. Traders Lose Because of Fear
    7. It Is All Perception
    8. Just Take the Trade Mode
    9. The Key Is to Be Consistent
    10. There Is No Fear or Pain
    11. Don't Try to Control It
    12. This Will Not Be You
  18. CHAPTER 10: My Trading Journal
  21. INDEX

Product information

  • Title: The Trend Following Bible: How Professional Traders Compound Wealth and Manage Risk
  • Author(s):
  • Release date: December 2012
  • Publisher(s): Wiley
  • ISBN: 9781118407745