Author: Michael Covel

Feedback in:

Hey Michael, thanks for all your insights. I’ve been listening to your podcast for a long time and I’ve purchased your books. Something I’ve been wondering about that I haven’t yet seen in your books (I’m still reading your books, Trend Following, and Trend Commandments, so there’s a good chance it’s in there and I’ll find it), is these top traders, trading client money or perhaps only trading their own money now, like Tom Basso: How much total exposure do they have in their holdings at any one time? Lets say they will risk 2% per trade on any one position. Have you seen that they will typically deploy all their capital / the entire fund into however many markets they’re trading for that program, and have 100% exposure? So at 2% risk per trade that would be about 50 markets they are trading at once in order to deploy the entire account. Is that how they typically do it? Or do they leave some cash or structure their portfolio another way?

Jay A.

You need a unit strategy for money management. There are max unit rules. One unit for 50 markets? That’s not the strategy. Two places to start: here and here.

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Feedback in:

Hello, finding accurate ways to predict the trend is my biggest challenge.

That’s impossible. I don’t know anyone who does that. How can you?

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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:

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• 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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Feedback in:

Hello Michael, Love the podcast. Just listened to the Mark Rzepczynski conversation. Could you please share your materials? Very interested in trend following. Much appreciated.

Michael B.

Was Mark your first episode? Why do you like the podcast?

Definitely not the first. I listen sporadically but had a long flight to France and binged in both directions. I am not good with names early in the AM, but my favorite was the guy from Dunkin’ Donuts. He is a humble pragmatic business leader. Of course all of the guests with an investment slant particularly the Turtles. Also liked the psychologist/author that you had some disagreement with. Oh, and your rants/monologues are also great.

Thanks for the feedback!

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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.

Feedback in:

My biggest challenge is getting over the fear of trading. Sounds stupid but I’ve been “educating myself” for 11 years and I still haven’t really taken the plunge!

Best wishes,
John S.

Your strategy and time frame now is?

I’m going to start trading options and CFS’s. ASAP. Thank you.

You told me what you will trade. But what is the system? Time frame?

Not sure what you mean by system and time frame is short to medium. Thank you.

You need:

• Exact rules for selecting your tracking portfolio.
• Exact rules for entering your trades at the right time.
• Exact rules for exiting your trades with a loss.
• Exact rules for exiting your trades with a profit.
• Exact rules for how much money to bet on each trade.

See my FAQS below.

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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.

All traders need:

• Exact rules for selecting your tracking portfolio.
• Exact rules for entering your trades at the right time.
• Exact rules for exiting your trades with a loss.
• Exact rules for exiting your trades with a profit.
• Exact rules for how much money to bet on each trade.

Do you have that? One reader responded:

I guess the answer is no. If we mean my own behaviours, I can explain my system: Find the trend, get a position. (About 10 stocks which are different industries) Put a loos-stop on lowest price of last 5 days. When loss-stop works, I wait trend or look other stocks. When stocks give profit I move loss-stops to on lowest price of new last 5 days. I don’t change loss-stops of loos-making stops. It is working in short terms. I haven’t start futures, I don’t open short positions. That’s why I miss downtrends. But this system is worse. It makes me look like day trader. Worse one.

Your system is a dead end. It’s not trend following.

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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.

Feedback in:

My approach to trading in the recent past has been to follow fundamental analysis. I traded the euro us dollar in a long view and entered the market every beginning of only a week when the previous week or weeks there had been a retracement of at least 200 pips since for the theory of parity of the purchasing power of currencies the price of the euro to that relative to the dollar was undervalued. According to Columbia University’s purchasing power currency pricing theory, the equilibrium was around 1.2500 / 1.2700 eur / usd. I was profitable until May 2021 when there was a revaluation of the euro against the dollar up to the price of around 1.2300 and then the price plummeting to parity of (1/1) these days. From May 2021 until October 2021 I continued to trade in the buy euro dollar direction, also averaging downwards and, unfortunately, I suffered heavy losses that canceled out my previous profits. This is the experience I have had on trading trading only one currency pair. doing operations by diversifying between several currency pairs I was able to mitigate the time wasters I was able to obtain some increasing gains or over time. This I cannot say. This is the most important experience I have had in trading. I would appreciate your views on the main mistakes I made in the trading I have carried out. Thanks for the answer that I want to give me.

Best regards,
Stefano D.

Your entire strategy should be tossed. All of it. My FAQs below will give another view.

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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.