My guest today is Al Abaroa, the Chief Investment Strategist at Kingsview and has been a registered broker and trader since 1993. He has seen all aspects of the investing industry.
The topic is a white paper that Abaroa wrote about trend following.
In this episode of Trend Following Radio we discuss:
- How people forget that anything can and will happen
- Why we’re seeing optimistic behavior in the market
- The similarities between the WhatsApp/Facebook acquisition and the AOL/Time Warner acquisition
- Abaroa’s wealth formula
- “Reasonable returns”
- Long term vs. short term outlooks
- The advantages of youth in trading
- Lifespan growth, and retirement
- Tom Basso and black swan events
- Looking back on major crashes
- Development and distribution as the two modalities of price
- Focusing on price action
- The Global Volatility Index
- Looking at black swan periods as a place to profit
- The asymmetrical return stream and the asymmetrical nature of trend following
- Why trend following produces returns a minority of the time
- Position sizing
- Fixed contract allocation vs. fixed fractional contract allocation and their role in position sizing
- Trend following investors and market timing
- Seeking immediate gratification in trend following investments
- Looking at trend following track records
Listen to this episode:
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