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Hi Michael, The biggest challenge in my short experience of trading is over analysing and not pulling the trigger, and double guessing in the wrong direction.
Thank You,
Grant M.
You need a system. You need rules. If you don’t have that — the cycle continues.
How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.
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Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.
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Michael, My greatest challenge has been what you discuss so well in Chapter 6: Human Behavior of Trend Following. Sincerely, Arne V.
Do you have a system now?
Yes, I do. My strong influences have been Dennis Wyckoff & Mark Shawzin, and of course your book. I utilize essentially naked charts and assess the market using three charts; Daily, H1, and 15M for refined execution. I trade session to session and am flat the market no later than 1:00 PM PST. 3.5 trades/day average. My hang-up has been summed up in the quote from your book, “The real pattern they miss is the pattern of acting with complete confidence to make decisions right or wrong in the face of the unknown.” Thank you for writing Trend Following. It has been immeasurably valuable.
Thanks for the nice words. But here comes some hard truth. Trend following is not hourly or minute bars.
Thank you for your forthcoming words. I completely understand what you mean, however, aren’t trends really a function of time? I agree smaller time frames are noisy compared to daily, weekly, and monthly charts for sure. Regardless, I believe that the trend following principles you so succinctly describe in your book still apply to me. They have helped me so much. By naked charts, I simply mean few to no technical indicators, just price action. Thanks again.
Trend following uses money management and portfolio strategies. 15-minute bar trading is something else, not trend following. Read.
How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.
Also jump in:
• Trend Following Podcast Guests
• Frequently Asked Questions
• Performance
• Research
• Markets to Trade
• Crisis Times
• Trading Technology
• About Us
Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.
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Hello Michael, My two biggest failings: 1. Failure to cut losses, otherwise known as failure to honour stop-loss levels; otherwise known as “fear of missing the turn” 2. Position size discipline. I’ve been trying to trade for some time. However, “life keeps getting in the way.” Poor excuse but it is a reason. The result is that I don’t trade for long enough periods to develop a set of rules worth following and hence tend to be scatter-gun in my choice of buying/selling levels. And that leads to poor results.
Kind regards,
Brian M.
Your system is now?
I mostly follow two strategies: 1. Supply/demand = unfilled order locations revealed by price action. Sam Seiden methodology first taught through the Online Trading Academy, now Sam is The Pinnacle Institute. This seems to me a logical explanation of price action. Trends are part of the diagnostics and the trick is to spot those sites of unfilled orders on the price action. Few trades but commonly larger R:R. Their view is less than 3:1 is not a good trade. 2. Trend-Signal “Sniper” buy/sell signals. They generate proprietary buy/sell signals using multiple price action based inputs. They don’t publish their algorithm. They encourage the use of ATR as targets and recent price action for SL. They trade more frequently than #1 but have lower R:R ratios each trade. They move SL to follow trends to extend trades beyond ATR if they’ve caught a turn into a new up/down trend. Both encourage set/forget with Entry, Stop, Target setting. Moving SL in #2 is part of their aggressive/advanced strategy but obviously requires paying attention to the trade. Both can be applied to Forex, Stocks, Cryptos. #1 is also applicable to Futures and Options, but these are not traded by #2. My failure to get either to work for me, whereas their published track records are stellar (both show >50% success rate), means I’m stuck in the Trough of Disillusionment of the Gartner Cycle with both systems currently. The problem is with me, not the systems. I’m not convinced by “Technical Analysis” indicators as predictors.
I would simplify and go trend following. Resources to start are below.
How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.
Also jump in:
• Trend Following Podcast Guests
• Frequently Asked Questions
• Performance
• Research
• Markets to Trade
• Crisis Times
• Trading Technology
• About Us
Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.
Subscribe to Trend Following Radio on iTunes
My guest today is Tom Basso, a hedge fund manager who currently runs enjoytheride.world, a website dedicated to trader education. Tom was one of several traders featured in Jack Schwager’s The New Market Wizards and dubbed “Mr. Serenity” by Jack. He was president and founder of Trendstat Capital Management. He is the author of two books, Panic-Proof Investing and the self-published The Frustrated Investor. In 1998, he was elected to the board of the National Futures Association. He is also the chairman of the board of Standpoint Funds, located in Scottsdale, Arizona, which specializes in all-weather investing.
The topic is Trend Following.
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Hey Mike,
My biggest challenge is that I have never traded before. I have spent the last few months educating myself in the trade. Following are the books I have read (Some are chartist type books. Don’t hold that against me please):
– Day Trading Quick Start Guide, Troy Noonan
– Technical Analysis of the Financial Markets, John Murphy
– Trend Following, Michael Covel
– How to Trade in Stocks, Jesse Livermore
– Confusion De Confusiones, Josef la Vega
– The Rule, Larry Hite
– Reminiscences of a Stock Operator, Edwin Lefevre (Evidently about Livermore. I have even read that some surmise Livermore is the author)
– Market Wizards, Jack SchwagerBut on another note. I just signed up for the Flagship system.
Look forward to helping you.
How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.
Also jump in:
• Trend Following Podcast Guests
• Frequently Asked Questions
• Performance
• Research
• Markets to Trade
• Crisis Times
• Trading Technology
• About Us
Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.
Subscribe to Trend Following Radio on iTunes
Please enjoy my monologue Get Into the Mind with Michael Covel on Trend Following Radio.
Want to learn more Trend Following? Watch my video here.