Articles

admin — Mon, 13 Jun 2011 15:02:21 +0000

The Bible of Trend Following – How Professional Traders Compound Wealth and Manage the Risks

Forward By David Druz

I’ve been trading for investors for over 30 years. My first fund, Tactical Commodity Fund started in mid-1981. I’ve learned a lot over the years. I’ve seen a lot of markets, a lot of bull moves, a lot of bear moves. And I can tell you I wish I had read this book 30 years ago. I would have made more money, especially near the beginning. Do yourself a favor. Read it. Now!! I tried to understand the psychology of the winners and how it differed from the losers. I got the idea that the psychology of the trader was as important if not more important than anything in success or failure. Very few people succeed in this process. The learning curve is too steep and the correct psychology is too hard to implement. If you have any attachment to making money, and who doesn’t, it is very tough to trade correctly.This brings me to the book you hold in your hands. To reiterate: I surely wish I had it 30 years ago. It would have saved me a lot of work. And I would have made more money, especially in the early years. More specifically I would have lost less money and that would have put me farther ahead today. Andy Abraham has written a gem. What impresses me most about Andy’s writing is his honesty. He doesn’t sugar coat things. He doesn’t tell you it’s easy to make money. He tells you that you need patience and discipline. (By the way “Patience and Discipline” has been Tactical’s slogan since its inception.) Andy tells you drawdowns and losses are part of the business. He presents a track record of one of his own programs that he started just a few years ago that has not made new highs in 17 months. That’s exactly how it works sometimes. What is so refreshing is Andy’s honesty about it. The man has integrity. Andy’s honesty, more than anything, tells me he understands trading psychology and gives me confidence he is qualified to teach others what he knows. I have yet to run across a trading book that emphasizes the psychological aspect of trading better than this one.

You are lucky to have picked up this book. If you are a seasoned trader, reviewing the basic elements of winning psychology makes this book worth perusing cover to cover. We can all use reminders, yours truly always. If you are new to trading this book can save you years of trial and error and monetary losses. This book is now on my short list of recommended reading material for traders. I sincerely thank Andy for having written it. Have fun reading it. I wish you all the best in your trading.

Dave Druz

Tactical Investment Management

CTA / CPO since 1981

Haleiwa, Hawaii

Excerpt Dec 1999 Technical Analysis of Stocks and Commodities

Multiple indicator for index funds

Attain Capital Interview of Andrew Abraham Oct 2011

Attain Capital

Excerpt May 2004 Investment Adviser Magazine

Matter of principles

Excerpt Sept 2004 Investment Adviser Magazine

My way of growing