Ep. 530: Against the Gods with Michael Covel on Trend Following Radio

Against the Gods
Against the Gods

Subscribe to Trend Following Radio on iTunes

Many take risk without thinking. They do not quantify risk. One of Michael’s first steps into the risk indoctrination came in the 1990’s through a book, “Against the Gods: A Remarkable Story of Risk.” Michael plays an excerpt from the author Peter Bernstein.

There is no perfect algorithm for risk, only guesses. Everyone has a limited amount of capital. Risk is putting your money down and knowing that you can lose it. In the trend following world, risk is why traders keep it small. How much can you afford to lose? This is the only thing you can control in the markets. Predictions should be a blinking red light for anyone listening.

In this episode of Trend Following Radio:

  • Stop loss
  • Know your risk
  • How much are you willing to bet
  • Coarse risk management
  • Long Term Capital Management
  • Too much dependence on math

Mentions & Resources:

Want a FREE Trend Following DVD? Get it here.

---
You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content.