New Trend Follower Input

Feedback in:

“I want to say I really enjoy your site and books. They continue to be an intricate part of my education. ‘Trend Following’ in particular was the catalyst for me. My favorites are the quotes and the cold hard facts that you present. This material, along with other sites and books ranging from trading to history to philosophy, led me to test trading theory for myself. After extensive work here with a whole bunch of common sense, I decided to launch my own fund which is kicking off in Jan 2011. For all of the lunatics that you attract, I want you to know that you are helping a lot of people including me realize their dreams. On a side note, I have spoken with several well-known traders including Dr. David Druz and it is amazing to hear them speak of the same concepts that translates to winning as you do. Thanks again.”
Michael M.

Thanks.

8 thoughts on “New Trend Follower Input

  1. There are far more normal people v. lunatics! I do find the nuts are great for making points. The psychology of what makes people tick will always be intriguing.

  2. I, too, enjoy your many sources of info and daily blog. I save key quotes and cold hard facts for reference and review these on occasion. All part of re-programming my brain and staying on track with TF.

    Thank-you

  3. Michael, I’d like to join in and say “Thank you”, because your work helped me to win, and protect me from losses.
    By the way: a lot of my friends are trading, too. Sometimes, when conversation strikes trading and personal strategies, I find it almost provoking how dismissive most of them react towards the concept of Trend Following. My personal favourite quote is “Losers average losers” by PTJ. The most common reaction I get is “but you have to buy when prices get cheaper, and increase your position when prices plunge further – how else will you cash on when stocks are expensive again?”.

    Why do so many people mistake the stock exchange for supermarkets?
    A lot of them are successful entrepreneurs (their business is not trading), which I find even more confusing.

  4. I’m really enjoying your must read list Michael. Getting a complete different mind set while reading on.. so yet another thank you ;-).

  5. Flow,

    It’s likely because your frame-of-reference is price behavior(what you objectively see), your friends reference-point is their thinking(what they believe) about what price should do. The stronger their beliefs are the less open they are to the wisdom of Trend Following because the strength of their belief is only the intensity with which they resist questioning themselves.

  6. p.s. I think that your friends way of framing experience works at the supermarket but often fails in the stock market.

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