The ETF Trend Following Playbook: Profiting from Trends in Bull or Bear Markets with Exchange Traded Funds

by Tom Lydon

Book Overview

Millions of investors have been left to pick up the pieces and figure out where it all went wrong over the last couple of years. They're furious with the professionals, and determined to regain... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0137029012
• ISBN13: 9780137029013
• Release Date: August 2009
• Publisher: FT Press
• Length: 205 Pages
• Weight: 0.78 lbs.
• Dimensions: 0.9" x 5.5" x 8.4"

Customer Reviews

Investing made easy!

So glad I read this book. The author explains the strategy in a language I can understand. This book gave me a solid plan that makes sense and eliminates the guess work. I'm ready to put what I've learned into practice!

An excellent and delightful read

All of the reviews prior to this filing are on target. Plus, the daily offerings on Tom's excellent website are basically continuing enhancements to each of his two books. If you bought the first book, save your money on this one. It is basically an elegant rehash. Curiously, portfolio construction is not addressed at all here. I suspect that in the future, suggested portfolios will be offered on a monthly fee basis as an option on the free website.

A Convincing Case for Trend Following

The secret to "trend following" success is no longer a secret. Tom Lydon has spilled the beans. Not that trend following is such a closely guarded secret. As a matter of record, the majority of people who are aware of trend following strategies have either ignored them or rejected them. But now the time is ripe for consideration by the ignorant and reconsideration by the learned. The ETF Trend Following Playbook (2010) by Tom Lydon will be a boon to investors, especially those who got burned by the 2007-2009 bear market. If, like me, you were hurt by adherence to a buy-and-hold strategy, you might be ready, as I was, for the switch from fundamental investing for the long haul to technical trading for the intermediate or short term. Tom Lydon's Playbook answers practically any question I can propose, such as: (1) what is "trend following," (2) who can benefit from trend following, (3) how can I put trend following strategies into practice, (4) where can I do my trading, (5) what equities should I be trading, (6) how can I clearly identify the beginnings of bullish and bearish trends, (7) how can I protect my portfolio from trend reversals, (8) when should I buy, (9) when should I sell, (10) why make the switch to trend following strategies now? Exchange Traded Funds (ETFs) are the object of Lydon's affections. He likes them because of their diversity, their easy trading, their openness, their low fees, their index tracking, their relatively low risk, and their tax friendly performance. This book has what a trader needs for navigating the marketplace. There is a detailed table of contents, a helpful glossary of technical terms, a comprehensive list of references and resources, numerous charts, tables, and illustrations, punctuated by a topical index of subjects, people, and funds. What's missing? Sadly, explanations of stop-loss strategies are missing. Stop-loss orders will protect your assets by generating an automatic sell when your ETF gets hit by a sudden downturn in the market. Stop-loss is defined in the glossary, but how can a trader take advantage of it? On his website, Lydon suggests a stop-loss setting of 8%. I sleep better at night when I have limited my loss of capital to the level of risk I am willing to bear. My Favorite Chapter: I especially like Chapter 3 on Spotting Trends. This is the chapter where Lydon teaches the tools of the trade. There are only three rules to follow: (1) buy when the price moves above the 200-day moving average, (2) sell when the price moves below the 200-day moving average, and (3) leave fear and greed out of it. Lydon operates a website, [...] that serves as a dynamic extension of this Playbook.

I Will Follow

I used to be a buy-and-hold investor, but after I lost a big chunk of my portfolio, I started looking for a new strategy and found Lydon's ETF Trends website. I'm completely sold! I have several colleagues who I know will benefit from "The ETF Trend Following Playbook" as much as I did. A must read!

The ETF Trend Following Playbook

Like Violet, I am a huge fan of Tom's website, as well as his investing style and strategy. This book helps culminate the confidence necessary to approach your investment goals, and navigate the ETF markets with ease. Also, this is great guidance to solidify your investment strategy so that it will fit any market condition.