Trend Trading Research

As I kick of my trend trading research I know relatively little about trend trading and technical analysis so I’ve had a browse through Amazon’s site and ordered some books to get me started, they are:

• Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders by Curtis Faith – A book by one of trading guru Richard Dennis’s ‘Turtles’ explaining the experiment and their trend trading strategies.
• Trend Following: Learn to Make Millions in Up or Down Markets by Michael W. Covel – An introduction to the principles of the trend following trading philosophy and its multiple aspects: discipline, drawdowns, risk and money management, behavioural biases, prediction vs. reaction, etc.
• Getting Started in Technical Analysis by Jack D. Schwager – described as a good introductory book for those of us who know relatively little (or nothing) about technical analysis.

Additionally I’ve ordered:

• A Random Walk Down Wall Street: The Time-tested Strategy for Successful Investing by BG Malkiel – Argues that the stock market is random and due the the efficient markets hypothesis it is impossible to out-perform the market on a consistent basis.
• Inefficient Markets: An Introduction to Behavioural Finance by Andrei Schleifer – It seems that the relatively new field of behavioural finance questions the validity of the efficient markets hypothesis and my offer some insight in the viability of trend trading strategies.

I’ve also read Richard Farleigh’s Taming the Lion: 100 Secret Strategies for Investing which is the book that inspired me to research trend trading.