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

by Andrew Abraham, David Druz (Foreword by)

Overview

There is no easy way to make money in today's markets. If you're looking for get-rich-quick advice or the holy grail of trading, the only thing you're really doing is wasting time and money. In order to truly excel at this difficult endeavor, you have to work hard, stay focused, and follow a method that will put the odds of success in your favor.

Nobody knows this better than author Andrew Abraham—a commodity trading advisor with over eighteen years of experience using trend following techniques to compound wealth and manage risk. And now, in The Trend Following Bible, he shares valuable insights, from the perspective of a professional who trades for a living, of what you need to know and internalize to become a consistent and successful trend trader over time.

Written with the serious trader in mind, this unique guide skillfully puts trend trading in perspective. It discusses the development of a robust trading plan, which is applicable to all time frames and markets, details how to manage the inherent risks of trading, and reveals how important patience and discipline are in order to see your plan through.

Along the way, Abraham explains the psychology behind successful trend trading, provides practical examples of traders who have applied it, and addresses the underlying principles you'll need to know in order to make this approach work for you—from trading the best markets, betting small, and using stop-losses to trading with the trend, cutting losses, and avoiding overtrading.

Trend trading is a journey filled with ups and downs. But by taking the ideas found here, and applying them to your own personality and risk tolerance, you'll discover what it really takes to capture trends and make money with them in the long run.

Product Details

ISBN-13:	9781118417638
Publisher:	Wiley
Publication date:	11/30/2012
Series:	Wiley Trading
Sold by:	JOHN WILEY & SONS
Format:	eBook
Pages:	224
File size:	15 MB
Note:	This product may take a few minutes to download.

About the Author

ANDREW ABRAHAM is a commodity trading advisor at the firm he founded, Abraham Investment Management. He specializes in trend following, utilizing stringent risk management techniques to limit losses, and capturing a small number of major trends to drive returns. Abraham has been trading for his account and with other CTAs since the mid-1990s. He has written for a number of industry publications including Technical Analysis of Stocks & Commodities, Investment Advisor magazine, and SeekingAlpha.com. Abraham speaks regularly at Traders Expo and other trading industry conferences and has done webinars for MetaStock and Reuters.

Table of Contents

Foreword ix

Preface xiii

Introduction My Journey as a Trend Follower 1

Chapter 1 Get a Savvy Start 9

Can You Really Make a Living as a Trend Follower?

Chapter 2 Getting the Most Out of This Method 25

Chapter 3 Why Trend Following? 35

Chapter 4 How Successful Trend Followers Trade 49

Chapter 5 Managing the Risks when Trend Following 81

Chapter 6 Your Complete Robust Trading Plan 95

Chapter 7 Trend Breakouts 107

Chapter 8 Trend Retracements 121

Chapter 9 The Trend Follower Mindset 137

Chapter 10 My Trading Journal 161

Conclusion 193

Disclosure 195

Index 197