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Author: Michael Covel

Author of Trend Following and TurtleTrader.

Richard Dennis Offers Sound Day Trading Advice

Posted on by Michael Covel

For every ten traders that try their luck at day trading nine of them will go broke. It is just the way the game works. Famed trader Richard Dennis had this to say about day trading:

If I’m buying and selling in the same day, it’s always to take a loss. I haven’t made a profit on a day-trade in five years.

Having a plan and sticking with it is also something Dennis stood by in his day trading advice:

“When you have a position, you put it on for a reason, and you’ve got to keep it until the reason no longer exists. Don’t take profits just for the sake of taking profits. You have to have a strategy to trade, know how it works and follow through on it.”

Without a solid plan, and the nerves to stick with it, the markets will exploit you, take advantage of you, and then in a sad quiet fashion…. leave you for broke on the side of the road.

Richard Dennis Tutle Traders Books
Be sure to read my book, the Complete Turtle Trader, to learn more on how Dennis led the Turtles to great success using the Trend Following method.

Find out more about the Turtle Traders.

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.

“This is my retirement money. I can’t afford to be out of the market anymore!”

Posted on by Michael Covel

John Hussman writes about investors with no plan who buy at the top, panic, sell, and get killed:

“This is my retirement money. I can’t afford to be out of the market anymore!”

“I don’t care about the price, just Get Me In!!”

“It’s a healthy correction”

“See, it’s already coming back, better buy more before the new highs”

“Alright, a retest. Add to the position – buy the dip”

“What a great move! Am I a genius or what?”

“Uh oh, another selloff. Well, we’re probably close to a bottom”

“New low? What’s going on?!!”

“Alright, it’s too late to sell here, I’ll get out on the next rally”

“Hey!! It’s coming back. Glad that’s over!”

“Another new low. But how much lower can it go?”

“No, really, how much lower can it go?”

“Good Grief! How much lower can it go?!?”

“There’s no way I’ll ever make this back!”

“This is my retirement money. I can’t afford to be in the market anymore!”

“I don’t care about the price, just Get Me Out!!”

Obviously, he is not a price based trend following trader, but his understanding of trading psychology dovetails nicely with 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.

Fat Tails and Tall Heads

Posted on by Michael Covel

From Attain:

Are global markets currently stiff or flexible? That is the big question. Transtrend would have us believe that the current “tall head” environment means we’re living in a stiff building, ready to break at the first sign of tremors.

Smart reading.

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.

Trend Following (and Me) Might Not Be for You

Posted on by Michael Covel

Seth Godin writes:

The fabled comedian is killing it at a club that seats 400. One guy in the back, though, isn’t laughing.

Miles Davis was shunned by a few people in the audience, even at his coolest.

The theater critic at the Times might not like this play, the one that made people cry and sold tickets for years.

And just about every blog post and book listing collects a trolling comment from someone who didn’t like it, didn’t read it or didn’t agree with it (or all three) and isn’t shy about speaking up with a sharp tongue.

For those people, the message from the creator of the work is clear: “It’s not for you.”

Unanimity is impossible unless you are willing to be invisible. We can be unanimous in our lack of feedback for the invisible one.

For everyone else, though, the ability to say, “It’s not for you,” is the foundation for creating something brave and important. You can’t do your best work if you’re always trying to touch the untouchable, or entertain those that refuse to be entertained.

“It’s not for you.”

This is easy to say and incredibly difficult to do. You don’t have much choice, though, not if you want your work to matter.

I could not say it better. My world might not be for you, but for those awake it is exactly for you.

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.

Most Financial Advisors Should Not Be Allowed to Even Administer a Foot Massage!

Posted on by Michael Covel

Feedback in:

Michael … I recently started listening to your podcast. Very informative and entertaining. Cool to see Godin and Zen Habits colliding with trading insights. The guests are great but the show is at its best when it’s just you riffing on a topic. And the humor is greatly appreciated (e.g. The comment in episode 51 about someone you would not let wash your car but that you would let massage your feet had me chuckling out loud while out on a morning walk.)

Thanks for cranking out the content!

Todd
Seattle, Washington

Thanks Todd.

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.

The Power of Habit Investments

Posted on by Michael Covel

From zenhabits:

How to Create Habit Investments: It’s a fairly simple process that you can repeat with various types of habit investments:

• Pick something desirable. If you repeatedly do this activity, what will it grow into? Is that what you want?
• Do just a minute or two of it. You can’t build it all up in the next few days. That’s a good recipe for failure. Just do 1-2 minutes of it today. Smile as you do it.
• Set a daily reminder. Let’s say you want to do it every day at about 6:30 a.m. Set a reminder for that time, and make it a priority to do it each day, just for a minute or two.
• Watch it grow. If you just do it repeatedly, it will grow. Don’t force it. Keep the repeated activity as small as possible for as long as you can if you want it to grow (it sounds paradoxical, but it works).

Perfect thinking for a new trend follower.

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.

“You certainly know how to connect the dots and express them with clarity and passion.”

Posted on by Michael Covel

Feedback in:

Michael, In one of your recent podcasts you pointed out Japanese investors and their risk aversion vs. their market’s performance over the past decades. When you next made the accusation that the same thing was happening among Americans you nailed it! It is exactly what is happening here, and, as you pointed out, it goes far beyond just investing in markets. You certainly know how to connect the dots and express them with clarity and passion. I only discovered your podcast a couple months ago but must say that I enjoy your insights and perspective while, alternately, so many other podcasts are so narrowly focused on what the S&P 500 will do in the next day-week-whatever. I find your thinking about how we engage the world around us similar to my own philosophy and will continue to listen and enjoy. Thank you for sharing. Regards,
Steven R.
Deerfield, IL USA

Thanks Steven. Appreciate the kind words.

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.