The Little Book of Trading: Trend Following Strategy for Big Winnings

Chapter Twelve

Sing the Whipsaw Song

YOU MAY HAVE NOTICED A RECURRING NAME IN THE chapters of The Little Book of Trading. I had no plans to mention Ed Seykota in five chapters of this book—it just happened. During my research process, the traders kept bringing up Seykota's name, over and over again.

For those unfamiliar, Seykota was originally profiled in the classic book Market Wizards, and is considered one of the legendary trend following traders of our time. He has influenced a tremendous number of traders—far more than are mentioned in this book.

My path first crossed with Seykota in 2001. He invited me to the U. S. Virgin Islands. The time spent with Seykota, and the ensuing phone conversations and e-mails over the years, have become some of my most influential trend following trading lessons. I would not be writing this book and passing along wisdom without Seykota's generosity and early mentoring.

While it was a pleasant surprise to see Seykota woven throughout the lives of other great traders, in this very small world of ours it should have not been terribly unexpected. When you decide you want the chance at making the big money, when you decide that you really are serious, there are only so many living original sources around who are willing to share. Seykota is one. ...