Secrets of Trend Following

Trend Following was my eight-year "hazardous journey" for the truth about trend-following trading. This book was meant to fill a void in a marketplace inundated with books about finance and trading, but that lacked any resource or reference to the best strategy to make money in the markets: trend-following trading.

I have come to learn over time that trend following is a confusing term. The best definition I have seen comes from trading psychologist Van Tharp: "Let's break down the term 'trend following' into its components. The first part is 'trend.' Every trader needs a trend to make money. If you think about it, no matter what the technique, if there is not a trend after you buy, then you will not be able to sell at higher prices.

"'Following' is the next part of the term. We use this word because trend followers always wait for the trend to shift first, then follow it." ...