Michael Covel talks to Michael Gibbons. Gibbons is a market timer (otherwise known as a trend following trader) who runs a firm called Gibbons Trading. Gibbons started as an economics major and quickly realized that much of what he was taught in academia didn’t add up. He has been trading since 1971, and was one of the first to discover what is now known as stock index arbitrage. He was one of the first to use computerized trading and currently provides his proprietary research primarily to large traders and hedge funds. Gibbons talks to Covel about how he got started in the markets; the fallacies of buy & hold and fundamental analysis; trading prices apart from everything else (and how this is close to playing the market like a video game, i.e. pong); the problem of when the media is simply “making things up”; how trading can be primarily psychological; the problems of the efficient market hypothesis (EMH) and academia; the benefits of having a trend following strategy during chaotic times; the danger of gurus; and separating your ego from your trading.