Ep. 565: Anthony Tjan Interview with Michael Covel on Trend Following Radio

Anthony Tjan
Anthony Tjan

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Anthony Tjan is author of “Good People: The Only Leadership Decision That Really Matters.” He is CEO and managing partner of Cue Ball and has a successful track record as an entrepreneur, principal investor and strategic advisor. He leads his firms overall direction and is involved in activities across the board with Cue Ball.

What was the progression in Anthony’s life that brought him to where he is now? Anthony is an immigrant and experienced a great amount of generosity throughout the years aimed at him and his family. He shares a story of being 15, selling picture frames in Canada. At the end of a long hot day of lugging around picture frames an elderly women invited him in for some tea. She finished their conversation saying, “As you go forward just make sure, as much as you love the product you are selling, you love the people more.” She ended telling him, “Just so you know, I believe in you.” This woman and that conversation resonated with him and set the stage for his leadership philosophy.

Anthony moves on to discuss the building blocks of a great company. Most have trouble looking at life or a business as a marathon. Biases give us a sprint based mentality and more often than not it can be detrimental. When choosing a hire, hire someone with character over competency. Skills can quickly be taught, character cannot. Of course, there needs to be a level of competency but a person needs compassion, empathy, and overall great character. Competition and compassion can be enforced together and we don’t need to lose one to gain the other.

Shedding drama from your life and company is also mission critical and goes back to hiring based on character. Drama is a disease. When hiring someone, always ask yourself, “Is this person going to act or react?” After every interview Anthony says to ask yourself a few things: 1. Would you want to hangout with this person outside of work? 2. Do you respect the persons work? 3. Would this be a person you would be proud of? 4. Throw out reference checks. Ask them to give two or three examples of lower level people who they have influenced.

If you are in the being hired phase of your life rather than the hiring phase, you may be asking, “How do I get started?” Anthony’s #1 piece of advice is to find a good mentor to model after. Mentorship is a tricky thing though, so how should young people today navigate gaining a mentorship? All mentorships begin with a baseline of chemistry. If that isn’t there, it can turn into a negative experience rather than positive. Great mentorship is also about breaking down titles and speaking to each other on a human to human level. Also, the best mentors don’t just try and help you in the confines of your work. Mentors should not only be helping you out in business but also helping to find your calling or higher purpose.

In this episode of Trend Following Radio:

  • Competency is not enough
  • Winner take all mentality
  • Mentorship
  • Value centric organizations
  • Pessimism vs. optimism

“Choose goodness as a lifelong intention.” – Anthony Tjan

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Ep 564: John Force Interview with Michael Covel on Trend Following Radio

John Force
John Force

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John Force is an American NHRA drag racer. He is a 16 time champion and his team has 18 championships under them. John is one of the most dominant drag racers in the sport with over 144 career victories and he is still pushing limits at 68 years old. John is considered the best. He is a premier example of making it happen with no excuses.

What drives John? He says, “At the end of the day everyone has to eat.” But beyond that, he simply loves what he does. He loves driving the cars and explains it as magic to him. It is that passion that has gotten him through crashes, burns and even fatalities among fellow racers and friends.

Passion may be what keeps him going, but it is a system that keeps him alive. There is an aspect of a cowboy attitude, however John has a checklist that he lives by. He has been driving for 4 decades and at this point he pokes fun at himself saying he is a trained monkey. It’s about sticking to what you have been taught and not veering too far from those teachings.

In this episode of Trend Following Radio:

  • Funny car racing
  • Persevering through the negative
  • Having goals
  • Entrepreneurship

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Ep. 563: Mark Minervini Interview with Michael Covel on Trend Following Radio

Mark Minervini
Mark Minervini

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Mark Minervini is author of “Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market” and now his newest book, “Think and Trade Like a Champion: The Secrets, Rules and Blunt Truths of a Stock Market Wizard.” He was also featured in Jack Schwager’s “Stock Market Wizards.” This is Mark’s second appearance on the show.

Nature vs. nurture or the debate of whether a person is “naturally gifted” is one of the oldest debates out there. Mark says he was an “unnatural” when it came to trading and he was actually in the negative for the first six years when he started. Why did he keep going? He had a passion for trading and a bigger vision of what he was doing. Mark knew he had all the tools to trade for profit, just not all the experience yet. He believed in what he was doing, had a passion for it, took responsibility for his flaws and put the process before the results–that is why Mark thinks he has been able to thrive over the years. “If you do not think you can perform at a certain level, you won’t be able to perform at that level” explains Mark.

Trading ultimately doesn’t come down to talent, it comes down to a trader’s correct mentality. Everyone wants to win, but everyone doesn’t choose to win. Is your passion your priority? Sacrifice is essential when trying to obtain anything worthy and Mark shares some of the personal sacrifices he made to become who he is today.

Next, Mark explains what is known as “the trading triangle.” Your average gain, average loss, and percentage of wins is what is known as the trading triangle. Averaging those components makes up your personal bell curve. When Mark does workshops only 8-12% of people attending have an idea of what their average gains and losses are.

Michael and Mark end the podcast going over the pros and cons of diversification. Diversification is great until it turns into what Mark calls “di-worsification.” When traders and companies start to veer too far from their core values they can start to hurt themselves with diversifying. There are many benefits from diversification when done in the correct way. Good traders know when to step on the gas and have a strategy backing them up.

In this episode of Trend Following Radio:

  • Process vs. outcome
  • Builder vs. wrecking ball mentality
  • Eliminating excuses
  • Neuro linguistic programing
  • Sacrifice when obtaining a goal
  • Risk of ruin
  • The trading triangle
  • Diversification vs. Di-worsification
  • Sophistication and simplicity

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Ep. 561: Jeff Goins Interview with Michael Covel on Trend Following Radio

Jeff Goins
Jeff Goins

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Jeff Goins is author of “Real Artists Don’t Starve: Timeless Strategies for Thriving in the New Creative Age.” Jeff dismantles the myth that being creative is a hindrance to success and reveals how an artistic temperament is an advantage in the competitive marketplace. Mindset, technique and understanding the right perspective is key, and Jeff helps get you there.

We all know there are staving artists in the world. We have told ourselves long enough that artists need to be struggling – that’s a myth. You can be creative and make money. Jeff uses an example of Michelangelo and how he was actually wealthy to the tune of about 47 million dollars. If the renaissance’s greatest artist was one of the wealthiest artists, then what does that tell us about today?

How did Jeff go down the path he is on now? Jeff is a big fan of apprenticeship and has always had the mindset that life is a classroom. Apprenticeship and observing how other successful artists have made a living is how you get started. Many find success by essentially stealing ideas from others and arranging it in a new, interesting and better way. Apple and Microsoft or McDonalds and In n Out are great examples of stealing from everyone around them and doing better. Look at your peers, the people in your industry and just do it better. Be persistent.

Another way to become a thriving artist is to own as much of your art as you can for as long as possible. Jay Z and Dr. Dre are two examples of this. You don’t let the label and manager take over you. Dre realized he didn’t want or need a manager, label, or partner in his company. It took him some time and going through a few learning experiences but he eventually established his own label on his own terms. Michael and Jeff end with a story about Disney and Pixar showing listeners that selling your art too soon can leave a lot of money on the table.

In this episode of Trend Following Radio:

  • Apprenticeship
  • What is your life’s work
  • Being an artist in today’s world
  • Owning the title that you want for yourself
  • You are what you say you are

“The starving artist strives to be original. The thriving artist steals from his influences.” – Jeff Goins

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Ep. 558: A Trend Following Back and Forth on Trend Following Radio

Fun Picture Serious Subject
Fun Picture Serious Subject

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Michael Covel and Larry Tentarelli break open the newest edition of Trend Following and discuss details of the 5th edition. It becomes a challenge to continually “up the ante” and Larry confirms that Michael hit the mark on this edition. The book is double the size and broken down into three sections: Principles, interviews, and research. Michael and Larry discuss: Dunn vs. S&P, mechanical trading, fundamentals, Warren Buffett and his drawdowns, 200 day moving averages, Nate Silver and Harry Denton on prediction, large fund trading vs. small fund trading, John W. Henry, chasing tops and bottoms of the market, Paul Tudor Jones, price action, process and outcome, CNBC and Joe Kernen, and much more.

In this episode of Trend Following Radio:

  • Is trend following dead?
  • Warren Buffett
  • Catching the bottom of the market
  • Prediction as a business
  • Price action
  • Process vs. Outcome
  • CNBC
  • Fundamentals

“Not losing money is a great trading strategy.” – Michael Covel

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Ep. 557: Eric Barker Interview with Michael Covel on Trend Following Radio

Eric Barker
Eric Barker

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Eric Barker is founder of the blog, Barking Up The Wrong Tree. He provides science based answers and expert insight on how to be awesome in life. His newest work is “Barking Up the Wrong Tree: The Surprising Science Behind Why Everything You Know About Success Is (Mostly) Wrong”.

What happens to valedictorians after graduation? Valedictorians are great at following rules and not breaking outside the box. This gets them far in school but not too far in the real world. Studies have proven most who excel in school end up in structured non-pioneering jobs. Most entrepreneurs don’t follow the rules of school or society. They are also generally classified as creative people and therefore have huge obstacles to maneuver through. Most teachers say they love creative children but research shows those are the students hated most. They don’t sit still or follow direction well. Luckily, In today’s era it is easier than ever for those creative types to succeed. The internet has given ideas the opportunity to spread quickly and easier than ever before.

With ideas easily being spread, so are negative (and positive) influences. We are always more influenced by those around us than we realize: work colleagues, friends, people at social events… whoever you choose to surround yourself with will have a tremendous influence on your life.

Learning to accept failure is just as important as surrounding yourself with the right crowd. New opportunities and innovation springs from a person’s ability to fail. Doing everything the same way every time, will always get the same results. Pushing boundaries is critical otherwise you’re not working toward expertise, you are just practicing redundant behavior. Everyone loves to hear about the 25 year old billionaire because it doesn’t seem like there was much work involved but when you peel back the layers, you see the grit necessary in getting to their success.

One example of grit and sustaining the right mindset is a research project Eric did with Navy Seals. What stood out the most was their optimism. They have short term focus that keeps them optimistically moving forward. Personal, persistent and pervasive are the three P’s that if kept positive, you can produce optimism and grit. Navy Seals don’t look at a 60 day program and say, “I can have no sleep or food for 60 days.” Instead they say, “I can get to lunch” and then after lunch they say, “I can get to dinner.” It is a day-to-day survival mode rather than big picture. The big picture is too daunting.

Michael and Eric end the podcast discussing what Eric calls “the buffet.” How close are you to buffet food? How much are your friends eating? Are you facing the food, or are you facing away? All these factors play a part in how your life is modeled.

In this episode of Trend Following Radio:

  • The entrepreneurial feeling
  • What makes valedictorians succeed
  • Filter leaders
  • Obstacles for creative people
  • Structure of story telling
  • Failure tolerance
  • Creating meaningful mentorships

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Ep. 556: R.P. Eddy Interview with Michael Covel on Trend Following Radio

R. P. Eddy
R. P. Eddy

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R.P. Eddy is an American businessman, venture investor, former U.S. government official and former U.N. diplomat. He is currently the CEO of Ergo, a strategy and geo political intelligence firm. R.P. is also co-author of “Warnings: Finding Cassandras to Stop Catastrophes.”

How did Fukushima happen? There were lots of Cassandras who knew there were issues. There were warnings thousands of years old, along with experts telling officials not to build the nuclear plant so low. Hurricane Katrina in the United States is another example where there were Cassandras who had the foresight to fix potential disaster, but were ignored. What would have happened if there was foresight to Saddam Hussein and the Kuwait invasion? A man named Charlie Allen had that foresight but was pushed aside.

With such credible people having undeniable evidence being ignored, this brings up the question: How does a dynamic change in government happen? It doesn’t. R.P. did a study finding that 1% of the public think for themselves to make informed decisions. As people turn on the T.V. or surf the internet they find biased information. It’s hard to sit down, find unbiased information and make opinions of their own. When we have Cassandras who come out with real data and information to make changes that can save thousands, it is hard to decipher if they are chicken little or the real thing.

R.P. profiled in depth Cassandras ranging from: Fukushima, Katrina, Madoff, 2008 collapse, the rise of Isis, and the invasion of Kuwait. In every instance the Cassandra went to the decision makers and asked the question, “Why are you ignoring all the data?!” The more outlandish the warning, the easier it is to be ignored. People who understand what is wrong with our brains, the ones who doubt themselves and double check data are the traders and leaders who thrive. Michael and R.P. end discussing nuclear weapons theory, North Korea, potential Cassandras, India vs. Pakistan, and why we should all stop and reassess the information that is fed us.

In this episode of Trend Following Radio:

  • Indicators and warning
  • Analysis and foresight
  • Pax Americana
  • Fukushima
  • Corruption vs. competence
  • Bernie Madoff
  • Black Swans
  • 2008 collapse

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