Michael Covel on Trend Following

Becoming a trend following trader was not my initial goal when I first decided that I wanted to become a trader. It was a process of traversing through a long winding labyrinthine path met with many dead ends before arriving at this style.

I intuitively thought that one needed to predict the market in order to become a trader. This path seems to be plagued by charlatans of every sort, trying to sell amateurs the next great indicator or "secret".

I actually think that there is an inverse correlation between one's skill as a trader and their propensity to write a book or newsletter about trading. I mean if you are a trader that really understands what you are talking about, and you have made several million dollars in the market, why bother to provide seminars or write newsletters.

This makes learning about trading difficult for amateurs, since many of the great traders keep quiet, while the charlatans never give up (if they did, they would lose their only source of income).

However, not all authors or newsletter writers are charlatans. One author that I am very much impressed by is Michael Covel. Michael Covel is the author of two books, and a blog (refer to my links section).

Michael Covel writes persuasively and logically on the topic of trend following, and on many other topics on his blog. Here is a video of Michael Covel describing the basics of trend following: