Jeffrey Gitomer is an author, professional speaker, and business trainer, who writes and lectures internationally on sales, customer loyalty, and personal development. He is best known for “The Little Red Book of Selling” and his newest book, coming out at the end of October, is “Truthful Living: The First Writings of Napoleon Hill.”
Jeffrey was introduced to the Napolean Hill Foundation about 10 years ago and volunteered to start writing for their newsletter with an article every Friday. Napoleon Hill was the founding father of positive attitudes. In 1917 he had a course in advertising and selling. At the end of every course he would lay out positive thinking. When the Napolean Hill Foundation found these writings, what they call “After the Lesson Visits by Napolean Hill,” the foundation approach Jeffrey about writing a book outlining his teachings. Jeffrey did not hesitate to say yes – and after years of pining over these lecture notes, his newest book was formed.
What energizes Jeffrey and motivates him to write? He loves what he does. Every day is a great day for him. He doesn’t have two days that are alike, or two books alike, or two speeches alike. He is most excited about “What is next?”. Jeffrey lives in the moment but is ready for tomorrow and his ideas, strategies, and connections – they are all in place to set him up for success in the present day and the next.
Tom Basso is back for episode 700. Tom is featured across Jack Schwager’s “Market Wizard” series and most famously known as “Mr. Serenity.” He was featured on episode 400 of Trend Following Radio with a mega 4 ½ hour episode, and today he is back for this new episode. Now retired from managing client money, Tom was president and founder of Trendstat Capital Management. He became a registered investment advisor in 1980, a registered commodities advisor in 1984, and was elected to the board of the National Futures Association in 1998.
Although Tom has been retired for over 15 years he still gets emails daily from aspiring traders. While on vacation with his wife, they came up with a more efficient solution to answering all these emails. Tom decided to start an educational platform that he more candidly describes as a “Tom Basso brain dump into a website.” He has had 28 years of experience managing money and over 40 years of managing his own money. With all that knowledge, his new website addresses what he feels new and old traders alike struggle with. All content on his website will be free aside from his personal training videos and a narrated version of his book “Panic-Proof Investing.”
What is it about the individual that is so important in trading? How do you become the best trader you can be? How does exercise and diet play into trading? How do you separate self worth from your net worth? How do you stay young in your energy? Michael and Tom keep their conversation on trading today more philosophical rather than technical.
“Intuitive expertise is not going to develop in a chaotic universe… I personally do not believe that stock pickers can develop intuition… there isn’t enough regularity in what’s going to happen to prices for intuitions to develop. When there are marginal situations where there is some predictability but poor, formulas do better than individuals… that is the domain where formulas beat individuals regularly is the domain of fairly low predictability, because when there are weak cues, people are not very good at picking them up and are not good at using them consistently, but formulas can be generated on the basis of experience and they will do a better job than individual judgement.”
Tiffani Bova is author of “Growth IQ: Get Smarter About the Choices that Will Make or Break Your Business.” She has a unique background, with 20 years of experience spread between start-ups and fortune 500 companies. Tiffani has put together a first hand look at what it takes to start and run a successful business as an entrepreneur.
How did Tiffani get her start in business? Early in her career she would ask executives and CEO’s constantly for little tid-bits of knowledge–she wasn’t afraid to step out of her comfort zone and ask for help. That feedback and confidence building was the cornerstone to becoming who she is today. What gave Tiffani the courage to talk to these leaders and say “please help and give me some advice?” Sports played a huge role. Win or lose, she learned how to conduct herself and hold her head high no mater what the turnout of a game was.
Growth IQ is a dense book with many case studies. Tiffani researched about 30 companies from all backgrounds including Kylie Cosmetics, Honest Co., and Under Armor–using them as examples to show how to build and sustain successful businesses. She also shows companies hitting forks in the road and how they overcame. Every case study may not be useful to everyone but there are lessons to be learned from all.
Tiffani stresses that it is sometimes the little changes made that make all the difference between a failed venture or a successful one. What are some good questions to reflect on if your business is not where you think it should be?: Is the order you are presenting your product off? Are you selling to the wrong demographic? Are you giving customers the wrong experience?
While off to a speaking event in Las Vegas Michael gives a new introduction to one of his all-time favorite episodes–trend following trader Ed Seykota’s second appearance. Originally profiled in the classic book ‘The Market Wizards’, Ed has played a pivotal role in the growth of trend following trading for over 40 years. Michael met Ed for the first time in 2002 on an island somewhere in the Caribbean and has kept in touch ever since. Today’s conversation breaks down into three parts: “Govopoly,” The Trading Tribe and trend following.
“Govopoly” is Ed’s most recent book and in it he sees the economy transforming from a free and open societal structure to a controlled structure. The Govopoly system is taking over. The solution is not about having another election or even trying to fix it. He see’s the government as something that will not change so the real question is, “What is the best way to cope and live with it?”
What is one strategy Ed uses to cope? The Trading Tribe is one outlet. The Trading Tribe is an association of people Ed formed to help bring traders together who commit to excellence, personal growth and supporting and receiving support from each other – on all aspects of life, not just trading. Members of the Trading Tribe rotate roles, becoming in turn senders and receivers for each other. Michael and Ed end the conversation with Ed sharing some early experiences he had with Richard Donchian and his solo time with mainframe testing some of the first trend systems via computer.
In this episode of Trend Following Radio:
The Trading Tribe
Trend following philosophy
“Everyone gets what they want from the markets.” – Ed Seykota
Jerry Parker is back on the podcast. He is the founder of Chesapeake Capital, was one of the original TurtleTraders trained by Richard Dennis and has had unbelievable success over his four decade career. Jerry brings to the table a straightforward way of breaking down how trend following works.
Trend following relates to everything – from Wall Street to baseball. One of Jerry’s early heroes was John W. Henry, a successful trend following trader and now owner of the Boston Red Sox. Michael and Jerry break apart how John W. Henry and others cross the trend following mindset into sports and beyond.
What is Jerry Parker’s worldview? “It’s dangerous out there and you cannot predict it. Stocks are not superior and they are not the go-to investment all the time. Pay attention to the trend. Protect yourself. Be humble, conservative and worried about risk.” He doesn’t see that view changing anytime soon for anyone – including investors. What do investors want? And do they know what they want? Jerry knows he can’t make everyone happy but he try’s to provide appropriate risk control for his clients without missing out on too much profit.
In this episode of Trend Following Radio:
Having a process and sticking to it
“The final step for AI and machine learning will be to wait for the breakdown.” – Jerry Parker
Michael explores new research showing pharmaceutical statins do nothing to help prevent medical problems relating to heart disease–if you have no risks. For years people have believed there was a special pill to save them from high cholesterol. Turns out, there is no special pill to help–exercise, eat well, get adequate sleep–these things are how you improve your health. It’s about personal responsibility. Trust yourself? Or trust the system that has been proven wrong time and time again?
$400 billion dollars has been lost in crypto currencies. Michael shares an example of a man who lost 95% of his $120,000 investment in Bitcoin. When Bitcoin started going down he tried diversifying into other crypto currencies. He said his learning process was like “solving the plot of a murder mystery.” The notion that he could use fundamental data and figure out how to trade Bitcoin was all wrong. Jerry Parker commented on this story by saying, “He should have studied trend following.” Having a stop in place, and looking at the data would have saved him from his financial ruin.
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Reminiscences of a Stock Operator by Edwin Lefèvre PDF
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