Trading the Trends

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 LOSS4. 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.

This book was a long read for me , and worth it. The book is pack with so much information

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!

En este libro el autor da mucho mas conocimiento de que mirar y como manejar el entrar y salir de una inversión. Recomiendo leer primero el libro de charting para entender este mejor. Luego de leer ambos libro e ignorar los videos de youtube comencé a ganar en el mercado y me genero mas tranquilidad al entrar y salir de mis intercambios. Fred Mcallen es un genio genuinamente.

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.

I found this book to be fun and easy to read and very informative. I enjoyed this book so much that I wanted to see what other books were written by this author. My recommendation is to skip the one about common sense investing and just read this book - "Trading With Trends" is better written and includes the most important concepts that are included in the other book and many important ideas that are not included in the common sense book.