Trading the Trends

Trading The Trends - by Fred McAllen - this is the second book after 'Charting and Technical Analysis'. This is a must read after finishing the first book. In Trading The Trends, a broad approach to the market is taken and then builds with greater detail as a strategy is selected and trade plan is used. Much of the knowledge from the first book is used as this second one rounds out everything with profit in mind. Whether you are a long term investor, swing trader, shorter term trader/day trader, techniques are discussed with examples and goals in mind. Entry and Exit points, moving averages, and other indicators are discussed. I skipped the 'Covered Calls' section because I know I won't trade that way, but it is consistent with the rest of the book. Covered Calls involve owning stock and using call options - this lines up more with the 'investor' strategy versus short term trading strategy I was exited about. Income strategies using options also are discussed such as a bear call spread. For Butterflys and Condors you might check out other sources, but some brief mentions about blue chips and utilities is covered. Advancing and Declining securities overall seemed helpful to me such as looking at the New York Stock exchange and index as a broader scope versus the DJIA for instance. The 50 DMA and 200 DMA are discussed with examples. The support and resistence concepts are vital and are thoroughly discussed. All in all, I have bolstered my trading with this book and have switched gears from being stubborn prematurally with puts on banks and the fractional reserve banking issues to a different strategy altogether with a shorter time horizon. These short term trade examples helpfed me greatly to hone my skills. Some things discussed I knew, others I only vaguely knew of, but were clarified by the author and explained well such as the 3-5 concept within a primary trend. The reason perhaps is that Fred had more exposure over more years than myself even though I know many of the techniques he discussed. In summation, Fred's book Trading The Trends is a MUST read!

This book is a great place to start as an investor or trader seeking ways to understand the markets and how to trade it. I enjoyed the conversational tone and examples laid out in the book. I plan to read it a few more times just for clarity and understanding.

One of the best books with the most clear examples and explanations you can find. Simple yet in depth and a very good read.

I really enjoyed this book it was very well written and easy to follow. Didn’t get bogged down with all the lingo language within trading.

I wish I read this book years ago! This book is a must read to both traders and investors. You will learn safer ways to how to trade for short-term, and invest for long-term! You can learn a lot to protect your money, just from using simple technical tools!

I would rank this book at the top of the list for the individual investor. Provides highly usable and practical information for the DIY investor who does not want to be bilked by his financial advisor. Most Robo Investors can do the investing for you, but I learned that they over diversify with conservative investments that do not keep up with the S&P 500 returns. All you need is knowledge and patience which Mr. McAllen's book provides in perfect detail and do the investing yourself.

This was life changing for me. The section on viewing the big picture of how the market cycle works is worth the price of this alone. I really like his approach on keeping things simple. Forget all your fancy indicators, if you can get really good at spotting trends, then you will be ahead of the game. I've made several good trades after reading this book, by spotting trending stocks, and buying the dips during a retracement. Obviously, you don't want to educate yourself from one source, but if you get the following out of this, you are headed in the right path: 1. View the big picture of the market. 2. Draw quality trend lines, channels, and support and resistance zones. 3. SET A STOP LOSS 4. I'm sure other fancy indicators can help, but I haven't been using them so much. A trending stock should be easy to spot. 5. Don't try to pick a bottom. 6. Understand when the smart money is accumulating and distributing. 7. A trending stock that is in an uptrend and starts trading sideways, doesn't mean there is going to be a huge sell off, it could just be a consolidation to another leg up. Be very careful here, and listen to Fred. I've been looking for biotech stocks that have had huge declines, and wait until I see a breakout and a new trend emerge. I don't recommend you do this at all, but the possibilities are endless. Thanks Fred.

Exactly how the markets performed. Of course hindsight is 20/20 but I been trading for many years now and all scenarios he discussed has happened and has happened historically; quite fascinating. I am middle of the road trader “swing trader” ,but I think I can do better after reading this book. The random walk theory doesn’t take into account the time span of how markets evolve repeatedly over time. If you just consider a month or two sure random walk is plausible, but if you consider the beginning of a bear market that can last two years then it’s definitely not random.

Good befinner book for trading, good tips

No me ha enseñado supuestos sistemas o señales para entrar y salir al mercado, y creo que el autor no lo pretende en absoluto. Si enseña, y muy bien, muchos principios y normas a seguir para hacer trading sin morir en el intento. Seguir tendencia es una buena estrategia, mucho más difícil de aplicar bien de lo que parece Este libro enseña mucho de cómo hacerlo bien

Best book out there gets straight to the point

Possibly one of the better trend following book. I have read Michael Covel's books before this one and was quite disappointed. There is no magic formula but the concepts are made more practical and it is less pompously written it's also does not come across as an elevator pitch. The philosophy is much more clearly explained and made accessible to anyone interested in the concept and there are no gimmicks. This doesn't mean it's easy as the examples have the benefit of hindsight but it gives you a clear foundation to build from.

Fabulous book,I have learnt a lot about trend trading, thanks to the author's clear writting and Amazon for providing it in kindle .