“Who the Hell is Michael Covel?”

This feedback came in today:

“Intriguing. Right message; wrong person to present it. People will ask (rightfully so): Who the hell is Michael Covel?

I like that. It kind of rhymes…

No one asked me to make this film, but I was concerned, for many valid reasons, that the story would not get told in the most hopeful way, so I decided to tell it. That’s the great thing about this world, if someone is not doing it, you can do it (or at least try!).

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You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content.

10 thoughts on ““Who the Hell is Michael Covel?”

  1. Another reader wrote in:

    “you are the worst want to be actor / director ever. wow you suck dude”

    There is no acting in this film, it is a documentary. Turn the camera on and shoot was our method. Scripted scenes? Not in this film. That same reader responded further with:

    “you were doing it to promote your business lets be honest here. you making money from it thats your objective”

    Socialists will not like this film, no doubt! Your comment reminds me of a clip I posted recently.

  2. Michael there will always be critics and there is always someone to be on the other side of our trades. Keep up the good work.

  3. Hi Michael,

    With regard to the second comment the person made, I think that he was attempting to ask whether you really cared about the people that you were addressing with this information.

    Granted you are attempting to make money from the documentary. After all, for the moment, we still do live in a capitalist economy. But the question that this person indirectly indicated is still valid: Do you really care about the sheep?

  4. With the information I provide, the manner and passion in which I write, I find these questions silly George. I found the original insinuation silly. For example, when I call the auto industry organized day care, which means it is a 100% waste of people’s time and money, that sure seems to be a more helpful view than very concerned looking politicians coming on TV making empty promises to people who want to believe. The movie will ultimately tell the story, and provide answers. I will let everyone judge it and me!

  5. Hi Michael

    I am sorry if you were insulted by my comments. I did not mean it.

    From your strong emotional response, I can see that you do care. It is rare to see people that really do!

    Please forgive me Micheal. Your books have helped me greatly in my own trading. I am just doubtful by nature.

    However, there is still some disturbing questions that remain. Don’t sheep make trend followers successful by their failures? It is not to our advantage to have sheep? As cold as this reality may be, it is true. Trend followers are wolves that devour sheep! Therefore, although you care, is it to your advantage?

  6. George, the sheep don’t help anyone, not even themselves! They generally trade against the trend so they don’t help trendfollowers. And when the markets are tanking they just sit there and do nothing and get pounded, or worse, they “double down”. Neither of these things helps the downtrend.

  7. Ken, thank you for offering you opinion. I greatly value it.

    You said that the sheep do not help us (trend followers) or anyone else. This is where I get a little confused. Maybe you can help me explore this issue further. I am quite interested.

    If trading is a zero-sum game then when trend followers win they have to be getting their money from somebody. We only win when somebody else has lost. This is just a simple fact. If all traders traded like us, then I fear our style might lose a lot of its edge and slowly become useless. For example, Dr. Van Tharp commented in his book Trade Your Way to Financial Freedom that the original rule of twenty day breakouts are no longer as effective as they used to be due to many more traders copying the original rule. This is perhaps why Richard Dennis did not want his students to talk about it. He did not want to lose the edge that he had. The edge that permitted him to take money from the sheep and suckers. Remember, Richard Dennis was trading psychology more than anything else. He depended upon the stupidity and weaknesses of others to make money for himself.

    This is why my comparison of trend followers to wolves is appropriate. For a wolf to eat, a sheep has to fall. It is as simple as that.

    As far as sheep trading against the trend is concerned, I am not so sure about that. Perhaps, during times of chaos and utter stupidity they cannot decide which way to panic but sooner or later these idiots decide and finally they make one side breakout into a sustainable trend. Even Richard Dennis had several false entries until the sheep finally decided which way the were finally going to go. Remember, sheep are not intelligent they just herd together clustering for long periods of time until they finally decide to take a general direction and move together. How long that movement takes does not really matter so long as these dumb animals finally take a side. When they do, we trend followers target them for the the kill in the zero-sum game.

    I have to thank Micheal for the sheep image. Genius! It is great Micheal. I am looking forward to your film.

  8. George, Im assuming the sheep are anyone who’s not following the trend. I think it primarily refers to the buy and hold crowd. If a market is trending up, the buy and holders just hold or sell. If a market is trending down, they will either buy or just hold. None of those actions help the prevailing trend.

    Also the stock market is not a zero-sum game. For every “long” position there is not an offsetting “short” position.

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