Best Trend Following Books For Beginners

Updated June 15, 2024

Investing in financial markets can seem daunting, but trend following offers a straightforward and effective approach for newcomers and seasoned traders alike. At its core, trend following involves capitalizing on market momentum by identifying the direction of prevailing trends and riding those trends to profitability.

This seemingly simple strategy has been credited with producing substantial returns over the years, making it an appealing choice for many.

In this article, we will explore some of the best trend following books available, each selected for its unique contribution to the field. Whether you are a novice investor looking to understand the basics or an experienced trader seeking advanced techniques and nuanced insights, these books will arm you with the knowledge and tools necessary to harness the power of trend following.

#1

Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets

Michael W. Covel reveals how trend following strategies can deliver substantial profits across diverse market conditions, from bull and bear markets to unpredictable Black Swan events.

#2

Following the Trend: Diversified Managed Futures Trading

Andreas F. Clenow provides a detailed, systematic approach to trend following through diversified managed futures trading, complete with real-world applications and statistical analyses.

#3

The Complete TurtleTrader: How 23 Novice Investors Became Overnight Millionaires

Michael W. Covel recounts the true story of Richard Dennis' legendary experiment that turned ordinary people into successful traders using simple trend-following strategies.

#4

Stocks on the Move: Beating the Market with Hedge Fund Momentum Strategies

Andreas F. Clenow demystifies momentum trading by providing a detailed, rules-based framework backed by empirical data and hedge fund insights to outperform market benchmarks.

#5

The Little Book of Trading: Trend Following Strategy for Big Winnings

Michael W. Covel delivers a concise, practical guide to mastering trend following strategies, aimed at achieving significant market gains through disciplined and systematic trading practices.

Top 5 Best Books On Trend Following in 2024

In brief, the following are the books that made it to our list:

1. Trend Following: How to Make a Fortune in Bull, Bear, and Black Swan Markets


"Trend Following: How to Make a Fortune in Bull, Bear, and Black Swan Markets" by Michael W. Covel is a comprehensive guide that distills the essence of trend following—a strategy proven to thrive in various market conditions. Covel demystifies this powerful approach, demonstrating how traders can achieve substantial returns by capitalizing on market trends rather than predictions.

The book explores real-world examples and insights from some of the most successful trend followers, shedding light on their strategies, philosophies, and risk management techniques. Covel also examines how trend following adapts to and excels during extreme market events, such as bull markets, bear markets, and even unpredictable "Black Swan" events.

Whether you're a novice or a seasoned trader, this book provides the essential knowledge to navigate and profit in the ever-changing financial landscape.

2. Following the Trend: Diversified Managed Futures Trading


"Following the Trend: Diversified Managed Futures Trading" by Andreas F. Clenow is a deep dive into the world of trend following and managed futures. Clenow, a veteran hedge fund manager, breaks down complex trading strategies into digestible concepts, making it accessible for both novice and experienced traders.

The book not only explains the mechanics of trend following but also emphasizes the importance of diversification and robust risk management. Clenow shares real-world examples and detailed statistical analyses, presenting a transparent view of what it takes to be successful in this field.

Unlike many trading books that promise quick riches, "Following the Trend" offers a realistic and pragmatic approach, highlighting both the potential rewards and the inevitable challenges.

Through meticulous research and practical insights, Clenow equips readers with the knowledge to navigate the intricacies of managed futures trading and to build a well-rounded investment portfolio.

3. The Complete TurtleTrader: How 23 Novice Investors Became Overnight Millionaires


"The Complete TurtleTrader: How 23 Novice Investors Became Overnight Millionaires" by Michael W. Covel is an enthralling portrayal of one of the most famous experiments in financial history. The book traces the journey of Richard Dennis, a legendary trader who bet that he could teach anyone to trade successfully.

Dennis recruited and trained a diverse group of 23 novices, who came to be known as the "Turtles." Through rigorous instruction in his trend-following strategies, these seemingly ordinary individuals went on to achieve extraordinary trading success, amassing millions in profits.

Covel's narrative combines thorough research with compelling storytelling, offering readers both an insight into the principles of trend following and an inspiring testament to the power of education and disciplined strategy.

By detailing the methods and mindset that led to the Turtles' success, this book serves as an invaluable resource for anyone looking to understand and implement trend following in their own trading endeavors.

4. Stocks on the Move: Beating the Market with Hedge Fund Momentum Strategies


"Stocks on the Move: Beating the Market with Hedge Fund Momentum Strategies" by Andreas F. Clenow offers an insightful exploration into the world of momentum trading. Drawing on his extensive experience as a hedge fund professional, Clenow provides a practical and methodical approach to leveraging momentum strategies in the stock market.

The book is structured around a comprehensive, rules-based framework that Clenow meticulously details, making complex concepts accessible to both novice and experienced traders.

By diving into historical data and case studies, Clenow demonstrates how systematic momentum strategies can outperform traditional market indices. He emphasizes the importance of robust risk management and disciplined execution while revealing the potential pitfalls and challenges that traders may face.

"Stocks on the Move" goes beyond theoretical underpinnings, offering readers actionable insights and tools to implement successful momentum trading strategies, ultimately aiming to help them achieve consistent market-beating returns.

5. The Little Book of Trading: Trend Following Strategy for Big Winnings


"The Little Book of Trading: Trend Following Strategy for Big Winnings" by Michael W. Covel is an accessible and engaging guide to the principles of trend following, specifically tailored for traders seeking to achieve substantial returns.

Covel distills complex trading concepts into straightforward, actionable strategies, making the book suitable for both newcomers and experienced investors. Through a series of compelling narratives, interviews with successful traders, and practical examples,

Covel illustrates how trend following can lead to significant market gains by systematically identifying and riding prevailing trends. The book emphasizes the importance of discipline, emotion-free decision-making, and robust risk management, all crucial components for consistent trading success. 

"The Little Book of Trading" goes beyond mere theory, providing readers with the tools and confidence needed to apply trend-following strategies in their own trading endeavors. With its clear insights and practical approach, Covel’s book is a valuable resource for anyone looking to enhance their trading performance.

Conclusion

In conclusion, the realm of trend following offers a wealth of knowledge and proven strategies that can significantly enhance your trading prowess. The books we've highlighted provide invaluable insights from industry experts, covering everything from the foundational principles to advanced techniques and real-world applications.

Whether you are a beginner looking to grasp the basics or a seasoned trader aiming to refine your methods, these books are essential reads. By diving into these resources, you'll be better equipped to navigate market trends, manage risks, and ultimately achieve sustained trading success. Happy reading, and may your trend following journey be profitable!

Jerry Garnes

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About the Author

Jerry Garnes is a seasoned writer in personal finance. His informative and insightful pieces have been featured by esteemed platforms like Bankrate, The Street, and Business Insider. In addition to his financial expertise, Jerry is a passionate poet and musician with a deep love for nature.

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