Author: Michael Covel

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My guest today is Paul Britton, a portfolio manager at Apollo Systems Research Corporation. In high school Paul’s dad put him into a stock that went from $5 to $60. He took his profit and put money into a couple more stocks that turned out to be winners as well. These lucky trades peaked his interest in markets. Shortly after making these initial trades, Paul’s dad also gave him a copy of “Reminiscences of a Stock Operator.” He started working and looking at data trying to see if he could get a system of his own to work. He quickly learned that you can play around with entry and exit points, markets, etc., but as long as you pick up on the big trends and ride them until they lose–that was the #1 way to make money.

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

• Momentum bias
• Let your winners run
• Fundamental trading
• Diversification
• Global macro trading
• Compounding
• Supply and demand

“In the long run, it’s the compounding that is going to do all the heavy lifting for you.” – Paul Britton

Mentions & Resources:

• Paul Britton

Listen to this episode:

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

Jump in!

Feedback in:

Another great confirmation from non other than Mr Tim Ferriss:

“People view all of these people as massive risk-takers, and when you actually sit down and talk to these guys, you realise they are expert risk mitigators. I think it’s very easy to come to the mistaken conclusion in business, for example, that you only win big if you bet the farm. And in fact, when I talk to some of these companies here in Silicon Valley for instance that have become worth billions and billions of dollars… in my experience, in no cases have they bet the farm. They have evaluated the downside – they’ve tried to measure the maximum allowable downside – they know not only their bet and their bet size, but when they’re going to fold. They have an exit strategy for minimizing or capping losses… I remember hearing an expression, I don’t know who to attribute this to, but it’s like ‘If you cap your downside, the upside takes care of itself’… if you take enough shots and you’ve constantly capped your downside, if you have a couple of outliers that give you disproportionate upside–in the long run, you’re going to average out ahead and beat most people.”

Indeed. Trend following.

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 One of the Omaha Guys Lays It Out with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

In this episode of Trend Following Radio:

• Knowing the edge of your own competency
• Humility
• Integrating disciplines
• Occam’s razor
• Academia in America
• Diversification
• Capitalism

Mentions & Resources:

• Charlie Munger

Listen to this episode:

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

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

Feedback in:

Hello Michael,

I am sure you have seen this article today in the FT, if not here it is.

I have all your books, and I am a regular listener to your podcasts, which I enjoy. My trading style is based purely on psychology and trend following, with manged risk. I would not trade any other way! Averaged 35% return over the last four years. Love it when you get Tom Basso, Richard Dennis and others on your podcast. Why make trading complicated…!

I think as human beings we can’t in today’s world, think simple is best. I have proved to myself, and to my bank account it is, and I use your books and listening to your podcasts to keep me on the straight and narrow. As sometimes you think you know best, and you completely F**K it up.

Great content, thank you for sharing.

An appreciative Trend Follower, who is very much Long on Covel Futures…!

Best regards,
[Name]

Welcome!

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.

Food for thought:

• Jeff Bezos’s Morning Routine Is the Opposite of Most Productivity Advice. Maybe Yours Should Be Too
• Where Do Our Greatest Trading Mistakes Come From?
• The George Costanza Portfolio
• Per capita lottery spending has doubled since 1995
• The 10 Most Important Technology Storylines From The 2017 NBA Season
• MIB Defending Against the Onslaught of Amazon
• Developers Look to Hit Tax-Break ‘Jackpot’ in Opportunity Zones
• Smarter, Not Harder: How to Succeed at Work
• Women Managers Have Little Margin for Error
• A Change in Perspective
• Small Is Better and So Is Passive in Money Management
• Please Allow Me to Introduce Myself
• Lottery math is human math
• Short Investing Rules
• Investor behavior: from priorities to expectations
• Every “Unified Republican Government” Ever Has Led to a Financial Crash
• Just because you don’t understand it
• Cash holders need a new drug
• We Only See a Version of the Truth
• The 5 Kinds of Bounces
• Markets aren’t struggling because investors fear Democrats
• The Psychology of Sitting in Cash, Part Deux
• You Have No Competition
• ETFs’ Hidden Source of Return—Securities Lending

Enjoy.

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 Deliberate Practice with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

In this episode of Trend Following Radio:

• Deliberate practice.

Mentions & Resources:

• Anders Ericsson

Listen to this episode:

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

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

Subscribe to Trend Following Radio on iTunes

Please enjoy my monologue Blast from the Past with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

In this episode of Trend Following Radio:

• Thinking Right

Mentions & Resources:

• Walter Williams

Listen to this episode:

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

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