Synopsis: Michael Covel talks with Alpesh Patel an asset manager who has written for the Financial Times for many years. Patel and Covel discuss trading in the context of Patel’s book, “How To Win at Spread Betting”. Even though Patel’s book has a focus on spread betting, the style and strategies he talks about hit home with trend following momentum-style trader. Topics include comparisons betweens stocks and futures; what the winners have in common; trade frequency, and why active traders tended to do better in Patel’s study; buy & holders vs. spread betters; academic vs. practical insights; whether Patel finds himself at odds with other Financial Times writers; why people like to imagine that trend following and momentum trading doesn’t exist; Patel’s experience as an expert witness with “trend following on trial”; why the average person has difficulty with betting small, cutting losses, and letting winners ride; George Soros, game theory and trading psychology; win/loss ratios; a coin flipping experiment performed with Ph.D’s, the importance of position sizing, and why systems aren’t everything; and why gut instinct is the opposite of what professional traders use. Free trend following DVD: trendfollowing.com/win.