Subscribe now and watch my free trend following VIDEO.

Author: Michael Covel

Author of Trend Following and TurtleTrader.

Ep. 1036: Larry Kotlikoff Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Larry Kotlikoff
Larry Kotlikoff

Subscribe to Trend Following Radio on iTunes

Laurence Kotlikoff harnesses the power of economics and advanced computation to deliver a host of spellbinding, but simple money magic tricks that will transform your financial future. Each trick shares a basic ingredient for financial savvy based on economic common sense, not Wall Street snake oil. Money Magic offers a clear path to a richer, happier, and safer financial life. Whether you’re making education, career, marriage, lifestyle, housing, investment, retirement, or Social Security decisions, Kotlikoff provides a clear framework for readers of all ages and income levels to learn tricks like:

  • How to choose a career to maximize your lifetime earnings (hint: you may want to consider picking up a plunger instead of a stethoscope).
  • How to buy a superior education on the cheap and graduate debt-free.
  • Why it’s smarter to cash out your IRA to pay off your mortgage.
  • Why delaying retirement for two years can reap dividends and how to lower your average lifetime tax bracket.

Money Magic’s most powerful act is transforming your financial thinking, explaining not just what to do, but why to do it. Get ready to discover the economics approach to financial planning—the fruit of a century’s worth of research by thousands of cloistered economic wizards whose now-accessible collective findings turn conventional financial advice on its head. Kotlikoff uses his soft heart, hard nose, dry wit, and flashing wand to cast a powerful spell, leaving you eager to accomplish what you formerly dreaded: financial planning.

Bio: Laurence Kotlikoff is a Professor of Economics at Boston University, Fellow of the American Academy of Arts and Sciences, Fellow of the Econometric Society, Research Associate of the National Bureau of Economic Research, President of Economic Security Planning, Inc., and Director of the Fiscal Analysis Center. He has written 19 books.

In this episode of Trend Following Radio:

  • Student Loans in the United States
  • Credit Card Debt
  • Standard of Living
  • Divorce Planning
  • Financial Thinking

Mentions & Resources:

Listen to this episode:

Jump in!

“My biggest challenge is I have no idea what I am doing after 3 months…”

Posted on by Michael Covel

Feedback in:

Hi Michael,

Thank you for reading my mail. Came across your podcast, and thought this is where I can pick up again. To put it bluntly, my biggest challenge is I have no idea what I am doing after 3 months. I started trading 3 months back. As others have said it, beginner’s luck. I managed to make few hundred bucks daily, “following trend”. I thought trading was easy. I thought I saw pattern in CEI, buying long, and selling. There were some consistency in the way market moved in late Sep for a few days, until I found out that was just luck being kind. Tried to pick myself up from tips in the media. Switched between PROG, PHUN and then some more. Found myself trailing further. In short, I learnt I am practising bad trading. Probably did not set myself up proper at the start, and do not have a system in trading. Current plan is to save up, and hopefully, come back in a year or two, lessons learnt. Once again, thank you for your time, and I am grateful for the training video. I will make full use of it. Appreciated. Have a great holiday and may it bring you and your family loads of blessings, love, joy and warmth.

Best regards
Jerry

Thanks. Grab one of my books and dive in deep.

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.

Ep. 1035: Long and Short Systematic with Michael Covel on Trend Following Radio

Posted on by Michael Covel

Subscribe to Trend Following Radio on iTunes

Please enjoy my monologue Long and Short Systematic with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

Listen to this episode:

Want to learn more Trend Following? Watch my video here.

“I knew I should have at least cashed out half and continued to follow when my portfolio was up 75%…”

Posted on by Michael Covel

Feedback in:

I have not been able to pull the trigger to sell a portion or all of a stock to cash out since I thought it was a more long term hold stock. But in hindsight, I knew I should have at least cashed out half and continued to follow when my portfolio was up 75% or so. I am a relatively new investor. It is all now back down to my original investment level and looking back, I should have sold and reinvested in new opps.

JF

You need a system, not guessing. One of my books is a solid foundation.

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.

“My problem for now is about strategy itself, I think, I have some ideas about entering the trade but there are some questions…”

Posted on by Michael Covel

Feedback in:

I am an engineer (35) which just recently got opportunity to trade (3rd world country and lots of sanctions). Last year I have been working 16 hours a day … I have read tons of books from different people about different techniques but these 2 had major impact on my direction. I got familiar with your work from your podcast especially the one with Parker got me (I did not know him at all before). Then listening to market wizards and Richard Dennis made me to think on the strategy. Started to program and did a little bit of back testing and saw that 20 day break out, indicates almost most of my good trades during past year and even better. My problem for now is about strategy itself, I think, I have some ideas about entering the trade but there are some questions:

  1. There is great focus on diversification. Could we claim that being in the stock market, but trading different groups is same as trading in different markets?
  2. It seems that position sizing is about future markets, but I am not sure if it is valid for stock markets as well?
  3. Stop loss of 2 ATR is quite huge which kills the size. If a stock in 20$ has 1.5 ATR then if I want to risk 1000$ it means (with 2ATR risk) around 6K$ which is relatively small size. Should this be adjusted as you indicated in your book?

Thanks for reading this email and thanks in advance for any help.

Best regards,
T.

Thanks for your note. Two big points:

1. Un-leveraged stocks alone is a difficult path. Why do you want no leverage?

2. Stocks are often highly correlated. You need to assess correlated markets.

More.

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.

“My biggest challenge was to discover my trading personality…”

Posted on by Michael Covel

Feedback in:

Thank you for your email. My biggest challenge was to discover my trading personality. Unfortunately this was done through real trading! Despite the fact of committing all possible mistakes a trader could make, the journey to discover my trading method matching my personality for following the trend was wonderful! I have my method to discover if the security is trending or about to trend. In this case I have an extra rule to confirm what the market wants. I have my entry and exit rule and an extra confirmation rule for these two ladies! And before all that my money management rule which is simple take small positions to catch “significant” moves. Now the journey continues! Thanks again for your attention.

Your exact system and time frame?

Thank you for your email. I could gladly present you my method and my Trend Following approach if you allow me half hour from your time. I trade the Futures Index of the US exchanges, basically the NQ future and this because it represents the growth world, so NASDAQ 100 is an indicator of itself for the economy. I use MotiveWave as my Charting tool linked to IB data. Before anything I analyse several aspects of Breadth and comparative markets of this security. I assess the Advance Decline Line. I assess the VIX cash & future on the VIX and its COT report, and the ratio of NQ/VXN. I assess the ZN-10 year bond and its COT report then its ratio and correlation with the future index on the weekly whether it is above or below my EMA benchmark. After all that I proceed as follows: First I assess the trend on the monthly chart, as this is my “Trend Chart”. Secondly I seek for a signal, on a closing basis, on the Weekly chart, that points in the same direction as my “Trend – Monthly Chart”. The Weekly Chart is my “Signal Chart”. Lastly I measure my risk on the Daily Chart, it is the place where I enter and exit my trades. This is my “Timing Chart”. I cannot withstand the pull backs so my set of indicators alert me optimally before or just about a pull back and much before the invalidation of a trend. When this pullback ends and the trend resumes on my weekly Timing Chart, I re-enter my trade on the Daily. If it is uptrend then I enter on Strength, if it were a downtrend then I would enter in weakness. For the stocks and Futures Equity Index and for several reasons which I have learnt the hard way, I go only long, since this is the natural for the issue. If Monthly trend chart were bearish with at least one lower low and one lower high then I would consider to enter a short trade on the name but this time with a target of 1 x ATR(10) on the daily. Then re-enter if downward conditions apply. Generally speaking the downtrend is a different beast to deal with, different mechanics different everything compared to an uptrend. I have never made consistently money by shorting a stock or a future equity index. To end with this brief description I would like to add that for the moment the monthly ”Trend Chart” shows upside so I chose only the long direction. If the weekly “Timing Chart” on the close and my set of indicators point to the upside then I would enter long 20 minutes before the Friday’s close with just 1 contract on the micro NQ on the daily “Timing Chart”. I would set a stop – loss at a “non logical place” perhaps the EMA(60) and trail it. I have my rules for pyramiding by adding – on to my position, I do not scale out. I usually exit the trade on the daily Timing TF when my set of indicators show me that trendwise and/or momentumwise it is not worthy to further continue with the move, so I trail my stop couple of ticks below the low of last daily formed candlestick. My approach If I were to put it in economic terms is more like “Labour Intensive” rather than Computer or robot intensive! It needs someone to be looking at several aspects of the security and create like this positive or negative confluences. It is possible though to mechanise it on the part of the signalling, I have already worked on it, but this development is part of a future project. I would like to thank you for your time and to thank you in advance for considering to present you my approach to trend following.

This is not trend following. Start here.

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.

Ep. 1034: Gregory Zuckerman Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Gregory Zuckerman
Gregory Zuckerman

Subscribe to Trend Following Radio on iTunes

My guest today is Gregory Zuckerman, the #1 New York Times bestselling author and award-winning Wall Street Journal investigative journalist lauded for his “bravura storytelling” (Gary Shteyngart) and “first-rate” reporting (The New York Times). He is the author of The Greatest Trade Ever, The Frackers, and The Man Who Solved the Market and is a Special Writer at the Wall Street Journal. At the Journal, Zuckerman writes about financial firms, personalities and trades, as well as hedge funds and other investing and business topics.

The topic is his book A Shot to Save the World: The Inside Story of the Life-or-Death Race for a COVID-19 Vaccine.

In this episode of Trend Following Radio we discuss:

  • A Shot to Save the World
  • COVID-19 Vaccines
  • Pfizer Meme
  • Wearing a Mask
  • The different types of COVID-19 vaccines
  • COVID-19 and HIV
  • Coronavirus and Obesity
  • Benefits of the COVID-19 Vaccine

Mentions & Resources:

Listen to this episode:

Jump in!