Ep. 200: Tom Basso Interview with Michael Covel on Trend Following Radio

Tom Basso
Tom Basso

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Today on the podcast, I speak with Tom Basso, the trader most famously known as “Mr. Serenity” in Jask Schwagger’s book New Market Wizards. Basso was a stock trader and president of Trendstat Capital Management, but is now retired.

In this interview, Basso and I discuss location independence, using mental exercises to optimize yourself, and Basso’s daily routine as a trader. We talk about Basso’s 39-year track record as a trader and discuss his strategies.

We get into the psychology behind trend following trading, how to identify difference between a regular drawdown and something going seriously wrong, and why the willingness to lose small amounts of money can have massive benefits in the long run. Basso also talks about why trend following does so well during black swan events.

This is Basso’s third time on my podcast. I hope you enjoy!

In this episode of Trend Following Radio:

  • How to use mental exercises to improve yourself as a trader
  • Why the tolerance for losing small amounts of money can make you almost invincible
  • Tom’s daily trading routine: how to ensure you don’t spend the whole day making trading decisions
  • Why understanding strategic planning is key to being a successful trader
  • Trading for clients vs. trading for yourself, and the regulations that go along with that
  • Understanding the difference between a normal draw down vs. something really going wrong
  • Separating facts from opinions, and why it’s important in trend following trading

Listen here.