Author: Michael Covel

Feedback in:

Hi Michael,

You are wrong that my system is not trend following, plain and simple.

I still need to read the footnotes and other links in the 6 emails as I have time, and I thank you for that information, but over the last 25+ years of trading I learned that there should be no emotions (or marriage to any instrument) in trading, I scan for the BEGINNING of the (hopefully macro) trend, get in on the triggers confirming simultaneously, and ride it until my indicators say exit (sometimes just for a day or week if it is determined to just be a temporary pullback before a resumption of the trend to a higher probability higher high).

The place where we are different is in the trading type media (ie stocks, futures, futures option contracts, options, currencies/FOREX, etc.). I rarely trade shares of stock when I can rather trade highly liquid option contracts giving me much more leverage and less capital tied up, something I so absolutely no mention from you. Stocks/shares are old school for account growth, unless you want to diversify with a few good companies and hold shares and collect dividends and possibly write covered CALLs longer term, but that is not trend following if you just buy and hold (I don’t do that either). The other big point when trading options is I am often SELLING premium instead of buying it so please don’t rant to me how 80% of folks buying options lose (not if they are trend following).

Thanks,
Robert M.

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.

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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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Please enjoy my monologue A Christmas Education with Michael Covel on Trend Following Radio.

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My guest today is Tom Basso, an American hedge fund manager. 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. Tom is widely known in the trading community as “Mr. Serenity” due to his calm and disciplined approach to trading.

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

• Equal opportunity v. equal outcomes
• Government spending, efficiency, and economic policy
• Importance of education in trading
• Public speaking
• Timeless principles in trading
• Starting a fund management firm
• Elon Musk’s mindset and influence

Mentions & Resources:

• Tom Basso
• Elon Musk
• The New Market Wizards by Jack Schwager

Listen to this episode:

• Listen to this podcast on iTunes. (Please leave a rating!)
• Listen on Spotify.
• Libysn RSS.
• Download as MP3 by right-clicking here and choosing “save as.”
• Free Video.

Jump in!

Feedback in:

Hello.

I’m still a beginner trader and my biggest challenge is being able to define the most appropriate price to enter and exit the operation.

Rodrigo C.

I can help. Start here.

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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:

Lovely place SGN. I’ve been there years ago when my son played in the chess tournament in 2018. I’ve not been there since but I love Vietnamese beef pho.

[name]

PS: I believe you owe me something. You mentioned in your podcast about sending something if your listeners write to you.

Sent!

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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:

Hello!

I love the question about the biggest challenge I’ve faced with my trading and hands down it’s my psychology. I was explaining to my 22-year-old daughter today that I never learned how to lose properly before I started learning trading. And I’m still not there, but I’m doing what I can to learn it. That’s just one component when I say psychology, though. It’s working on my patience and kicking my ego to the curb. I have a long way to go.

Wishing you all the best,
S. M.

My video is a great wake up call.

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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:

Mike,

I’ve had three issues that have kept me from trading well over the years.

1. The tendency to be a perma-bear
2. An unwillingness to cut losses and medicate with hope
3. Resistance to back-testing

I’d sum these up as an unwillingness to commit to trend following – that being my major obstacle / challenge, until now.

Fun fact, as related to the content of your message below: I joined Salomon Brothers in 1994 after my undergrad at Virginia Tech (not in Sales & Trading, but as a Business Technology Analyst).

And in 2009, I joined the [name] Trading Tribe and have had the good fortune to meet Ed Seykota at a couple of his workshops in Austin/Bastrop (2013, 2019).

Small world!

Best,
[name]

Yes, small world! A good start.

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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.