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Ep. 538: Global Opportunity with Michael Covel on Trend Following Radio

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The vast majority of the investing population only know their own country’s stock index inside their portfolio. Top investors know much more than that. They think about gold, palladium, the Swiss franc, the Japanese yen, silver, copper, bonds, wheat, etc. Most would never think of trading these markets, however these markets are part of the trend following world. Any everyone can trade any market through a handful of different financial instruments such as ETF’s, LEAPS, and futures. The fundamentals of these markets are irrelevant for profit. The only information needed to trade any market for profit is price. This type of thinking opens markets up to anyone and everyone willing to play the game and take advantage of the global opportunity trend following provides.

In this episode of Trend Following Radio:

  • Price action
  • Momentum
  • Macro hedge fund
  • Trade everything
  • Ignoring the fundamentals

“All price action is, is human behavior manifested in the number. That’s it.” – Michael Covel

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Should You Jump or Not? Some Good Thinking

Feedback in:

Hey Mike:

I’ve been trading on and off for about 20 years but I finally have created a fully back tested system that I’m really happy with. I’m thinking of becoming a full-time trader and quitting my job to be fully focused on getting consistently competent. As my system only works on daily price I only really need about 30 minutes a day to execute my scan and trade. I’m thinking of getting a part-time but I’m worried that this will take from my focus. Before I had my current job for the past year I was self employed in retail and hospitality for 15 years so I have an understanding of being an entrepreneur however I feel that having these businesses and trading at the same time is the reason I haven’t been able to get it right.

Would love your thoughts.

Cheers
[Name]

Asking if you should jump or not?

Read:

Or this by me:

Enjoy!

The Incredible True Story of the Real Life ’Trading Places’

Recently, I joined Bloomberg’s Joe Weisenthal and Tracy Alloway on thier podcast, Odd Lots, to talk about Trading Places and the Turtles:

If you have any interest at all in finance, then it’s mandatory to have seen the 1983 movie “Trading Places.” You remember, right? Two wealthy Philadelphia commodity brokers bet on whether anyone, even down-and-out Eddie Murphy, can be trained to become a successful trader. What you might not realize is that something very similar happened in real life. In this week’s Odd Lots, we examine the amazing tale of the Turtle Traders. In 1983, successful commodities speculator Richard Dennis took out a full-page ad looking for novices to train in the art of trading. His novices — who did spectacularly well — studied for just a few weeks and were dubbed his “Turtles.” Joining us to tell the story is Michael Covel, who wrote a book on the Turtles, and Jerry Parker, a former Turtle who still trades using the same technique today.

Check it out here.

Trend Following Radio Feedback

Feedback in:

Hi Michael,

I’m an avid follower and seldom miss a podcast. Thank you for the frank perspective in these uncertain times.

I am deeply concerned about the coming crash and have taken significant action but am constantly seeking out more information on how to protect oneself financially, politically and socially.

I just listened to the Brad Rotter interview. Wow! Please share information on how one would go about buying the blue bonds when they are available. Water investment is high on my list of actions, but options are scarce.

I’d also really appreciate your video and any other relevant information.

Many thanks for the podcast.

Scott
South Africa

Thanks Scott.

Ep. 537: Isaac Lidsky Interview with Michael Covel on Trend Following Radio

Isaac Lidsky
Isaac Lidsky

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Isaac Lidsky graduated from Harvard with a degree in mathematics and computer science, was a successful practicing attorney and became the only blind person to have clerked at the U.S. Supreme Court. His story is one of overcoming a rough obstacle. Isaac’s book, “Eyes Wide Open,” is about making the choice to take control of the reality you create for yourself. To choose in every moment who you want to be and how you want to live your life. Holding yourself accountable is the starting point.

Sight is a great case study for showing how we create the lives we live. What you physically see isn’t necessarily an accurate depiction of reality. Isaac had been living in fear of his blindness until he went to see a low vision rehabilitation specialist and had an “aha” moment. She asked about his using a cane to get around even though he could still see slightly. It made him realize that even though he was rapidly losing his sight, all he had was right now. He was subjecting himself to succumbing to a fear that was down the road. He was able to choose to live a different way.

We misunderstand luck as humans. People have a tendency to believe that we can isolate one moment and perceive what our lives would look like if we made that one change. It is a waste of energy to get caught up in thinking of the “what ifs.” So many fixate on a static decision that is unchangeable. You can move on from a decision. Looking at other situations and feeling envy of what they have is another swift way to get nowhere. Nothing is simple, even though another persons story may seem simple or that they got where they are based on one decision. Things are usually much more complicated than that.

In this episode of Trend Following Radio:

  • Living in the “now”
  • Heightened senses
  • Luck and skill
  • Fear we create
  • Entrepreneurship

“You won’t get from A to Z without getting from A to B. And the world is going to change a million times between A and Z.” Isaac Lidsky

Mentions & Resources:

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Statistical Thinking 101: Where to Start?

Feedback in:

Dear Michael,

I have read your book ‘Trend Following’ twice. I have been totally drawn into trend following and now wish to fully adopt it into my trading. You mention about statistical thinking in your book, my knowledge on statistics is very basic and I wish to expand this. Are there any books you would recommend that I read to develop my statistical thinking.

Thank you for taking the time to read this email, you are busy so please reply only when you have the time to do so.

Kind Regards
[Name]

Poke around Google and YouTube. Many free classes starting day 1 of a class: MIT, etc.