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Trend Following Mailbag: April 13th Edition

Trend Following

Trend Following

Charles Faulkner has not only been a guest of mine on Trend Following Radio many times, but he also has been profiled in several of my books:

Perhaps you have heard the expression about living in the moment of now. What do I mean? The past is gone and the future is unknowable, but we have right now. That does not mean we cannot consider our past experiences or mistakes as useful references. Nor does that mean we cannot prepare and plan for the future. It does mean that making decisions based upon what is actually happening in the moment of right now is how great trend following traders organize their lives and produce their fortunes.

While not primarily a trader, Charles Faulkner brings a tremendously useful insight to the table. In all my years I can think of no one who does a better job of bringing traders and investors to a better understanding of themselves. Understanding yourself as a trader is the needed introduction to the journey of success in trend following profits.

Faulkner sees the world from a very wide and novel perspective, and you should too.

Case in point: A crucial lesson to understand is that when entering the market game, losses are part of the game. No matter the amount of experience you have, there will always be losses. That said, you want to make sure your losses are ones that you can handle—knowing that they are emotionally going to affect you.

People in sports understand this. Professional game players understand that to build your skill, you need to take losses and learn from them. You hope to play against people better than you because that is what makes you better.

Studying traders is very useful because everything in their world is extremely focused due to the intensity of their profession. What might take months or years to unfold in an ordinary life can unfold very quickly for traders.

For example, for many people the biggest purchase they make is a house or a car. And for many successful trend traders that kind of money can go through their hands within an hour, or even minutes.

This means, when trading, you don’t want to view money in terms of dollars as if you were going to buy a new car, but rather use the dollars to keep score. Putting yourself into that mental framework is critical. Releasing your mind from how you value money in terms of shopping, and instead focusing on it as a score during the game, is a huge first step.

Consider some feedback from a listener:

Dear Michael,

This is a belated thanks for an excellent podcast. Both your own, and your guests thoughts and opinions can be truly compelling. This is especially true with your Charles Faulkner interviews, and the recent podcast with Michael Ellsberg. Thank you for bringing his book to my attention, it was worth the recommendation. would certainly consider sending you some form of “Adviser Equity”, when I get the means.

Western Australia

More feedback in:

Hello Michael,

I must admit that while the first five of my hundreds of my books was your books, I never thought you [would] have a podcast with the brightest and greatest persons in finance. Gladly, I found it and catching up with your 400+ episodes starting with the most recent ones. I’m now at 302. Simply the best!

Like many other market participants who never stop searching for the “Edge” to squeeze out profits, I have taken the long and brutal route with minimal to flat results until this day, from a 7 year journey. While I only follow the smartest people with decades of records, I must do it myself based on short experience, beliefs and intuitions. However, as I said it only produces lackluster results. However though, I have to do it myself not because I need to prove something (partly true), but just simply to be me – no diploma, self-thought, hard work, perseverance and courage to state the least.

More power to your one of a kind work.


More feedback in:

Hi Mr. Covel,

I am listening to your Podcast as often as I can (lot of work/fun for more things). Most of your interview partners have nice stories to tell, but it is time consuming and sometimes is also annoying to listen to some of your guests which have a not so “international” accent and are hard to understand.

Most of them are experts in financial business?! And it is hard to believe that a lot of them are not able to use Skype or Facetime. I can`t imagine that those millionaires and genius investors haven`t a high speed internet access.

The last interview with e.g. Jim Jogers has audio quality like from a rotten telephone cell in rural areas although he is living in Singapore. I was there 2 weeks ago and the connection to the web is great over there.

Please take more a look on quality instead of quantity with your interviews. Your Listeners are worth it.

Few points:

1. Over 200 interviews on my podcast and probably less than 20 where the guest elected to use their phone.

2. Many of the guests that have elected to use their phone have been Nobel prize winners, Jim Rogers, Ed Seykota, etc. You could turn those guests away on your show? I don’t. Skype is not something everyone has grown up on.

More feedback:


Thank you for responding to my friend JD recently.

I have totally enjoyed listening to your podcasts. When I ran across your website, (I would have liked it to have been years ago) I started listening to your podcasts. Started on the oldest and currently listening to #83 with the great Tom Basso. So I have a long ways to go. When I first started listening I thought what a great idea. I know people are available because years ago before the internet, I spent 30 minutes + on the phone with Mark Faber who was living in Hong Kong at the time. Mark was very easy to talk with and forth coming with information so I applaud you for doing what you have done and are doing. I do have a question. What are the top 3 companies offering either software or services to test various strategies? I have done all of my research by hand due to the fact that I have pretty much come up empty handed as far as a fairly inexpensive and simply to use system. If you have a podcast that covers this just let me know which one and I will listen to that first.

Let me know how I can help you


I help everyone equally out here with trend following consulting. Short answer? It depends. And there are many ways from C++ to Excel.

Feedback from a listener who is learning to deal with the noise:

Hi Michael,

I just want to say how much I love and admire your passion and what you do via your podcast, free education materials and books. I have been following you for a year, listened all of your episodes, watched your movie, read all your books and soon will get a Flagship product.

Not sure why I can’t leave multiple reviews on your podcast, but here are some latest ones I want to share with you:

EP: 400: Must be aired 24/7, 365 on CNBC, Bloomberg and other financial media channels. Tom Basso is the best!!. His calmness, simplicity is the key to trading and investment success.

EP: 404: Listened twice yesterday. You and Napoleon Hill woke me up.

There is so much trash and garbage in the investment/trading world these days, it’s hard to keep up and shut this noise down, avoid negativity and stay positive.

There are so many “get rich quick” schemes out there, it’s amazing people fall for it.

I won’t be a slave and part of the herd. I don’t want to have a collar around my neck and be chained.

Keep new podcast episodes coming!

Thank you and Best Regards,

Thanks for the nice words! I wait to help you with Flagship.

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