Trend Following, often referred to as trend trading, is a trading strategy that looks closely at the price of an asset as it goes up or down. Expecting the price movements to continue, a trader will sell an asset when its trend is moving downwards and buy when the price is going up. Making use of automated stock trading systems enables a trader to watch the prices closely in order to make timely buy-or-sell decisions.
Michael Covel and his works
Michael W. Covel is currently one of the strong advocates of Trend Following and runs a website with the same name that focuses on providing practical resources for investors who want to profit in the down and up markets. He wants traders to follow the market trends even without news, fundamentals and broker assistance.
Mr. Covel is a film director, entrepreneur and most notably, a bestselling author. His first book is an international bestseller entitled “Trend Following: Learn to Make Millions in Up or Down Markets” which demonstrates that trend following is a viable trading strategy by analyzing years of detailed performance data. Financial Times Press initially published this bestseller in April 2004. The book has been republished with expanded and/or updated editions ever since.
Mr. Covel’s other published written works, all of which tackle trend following or riding on market trends, are the following:
- The Complete TurtleTrader: The Legend, the Lessons, the Results (2007)
- Trend Commandments: Trading for Exceptional Returns (2011)
- The Little Book of Trading: Trend Following Strategy for Big Winners (2011)
As a film director, Mr. Covel released the documentary film Broke: The New American Dream, which covers a variety of economic concepts including stock-market volatility. It contains, among others, interviews with economists and financial figures, analysis of behavioral finance, and criticisms on Americans having no responsibility for their investments.
“Aha!” Moment for Monster Trading Systems
Monster Trading Systems CEO and Founder, David Stephenson, has been interested in the financial market since 1987. He is passionate about trading but has been in and out as a stock broker or being employed by trading firms while researching everything about the industry, trading with his own personal account, testing automated trading systems, and ultimately creating his unique trading algorithms.
Along the way, Mr. Stephenson had some missing links to creating the ultimate auto trading systems which will help traders, investors and money managers to buy or sell assets at the right time and with great precision.
Mr. Stephenson had the biggest “aha!” moment when he chanced upon the book ‘Trend Following’ by Michael Covel at an airport bookstore while traveling and at that time, he finally discovered the biggest missing link that ties together all of his research efforts throughout the years. Letting go of his stockbroker job, not following the bandwagon in the industry and doing things himself (despite being the hard way) had finally paid off.
Trend following makes Mr. Stephenson realize that the answer was Price Action. And it turns out to be the right one considering that financial professionals were coming to him for his automated stock trading systems.
Mr. Stephenson is now an accomplished trader and software developer of automated trading systems.
Understanding Trend Following
The concept of trend trading or trend following is fairly simple: sell when the price is trending downwards, and buy when the price is trending upwards. The assumption is that the price will continue to move in the same direction while it is trending. However, one doesn’t look at the uptrends and downtrends alone to make successful trades. Factors such as moving averages, trendlines and other technical indicators are also carefully watched to identify trend directions and indicate trade signals.
Fortunately, traders can make well-informed trading decisions without the complexity of calculating or charting technical indicators by using automated trading systems, which can send stop-loss and take-profit alerts to avoid big losses or bring home profits if the trend starts to reverse. With auto trading tools, even beginner traders can maximize their profits by making more precise trading decisions.
At Monster Trading Systems, we have nine auto trading systems built on the concept of trend following. There’s one for everyone depending on your trading expertise and the market you’re focusing on.
- Bull Master – for large-capital stock traders
- Monster Scalper – for intra-day forex traders
- Cryptos Monster – for cryptocurrency traders
- Forex Dominator – for long-term forex traders
- Monster ETF – for exchange-traded funds traders
- Monster US30 – for traders eyeing the top 30 publicly listed U.S. companies
- Monster Futures – for futures traders
Learn more about Trend Following through 1-on-1 Coaching
Monster Trading Systems also offer One-on-One Trading Coaching with Mr. Stephenson so that you can trade markets with more accuracy, maximize profits and even prevent emotions from manipulating your trading decisions. Our coaching program is available for both new and professional traders. Get in touch with us today.