This week’s Book of the Week is Trend Commandments by Michael Covel. Since I have two of Covel’s other books listed on my Recommended Reading page, it’s obvious that I really enjoy his writing. I am also a regular listener of his podcast interviews. Because I like Covel and have read and listened to most all of his books and podcasts, I had a general idea what to expect from this book. This is the difference between my positive opinion and the few people who gave it poor reviews on Amazon.
This is not a book that is going to give you detailed analysis of stock market systems. Covel is not trying to map out a system at all. This book is all about mindset. It is a collection of short essays and quotes that reflect and shed light on the mindset held by the great trend following traders of our time. Trend Commandments is not a blueprint for trading profits, it’s a general outline.
If you are able to get past that point, this book is a fantastic read. Covel’s style is interesting because he is able to write light, fast reads that still force you to reflect on deeper meanings. He forces you to examine not your detailed trading strategies, but your overall mindset.
Some of my favorite chapters were: Show Me the Money, Speculari, Place Your Bet, Panicky Sheep, and Buy and Hope. In addition to writing great chapters, Covel also leads off each chapter with various quotes that are generally not associated with trading. This brilliant touch gets the reader to think about trend following in terms of everyday life.
All in all, if you like Covel’s style, you’ll find Trend Commandments to be a quick but very interesting read. If you don’t like his style, then you probably aren’t going to bother reading it anyways.