My guest today is Derek Lidow, a professor of practice at Princeton University, author, speaker, entrepreneur, former CEO and founder of iSuppli, and former CEO of International Rectifier. Lidow is author of three books: Startup Leadership: How Savvy Entrepreneurs Turn Their Ideas Into Successful Enterprises, What Sam Walton, Walt Disney, and Other Great Self-Made Entrepreneurs Can Teach Us About Building Valuable Companies, and THE ENTREPRENEURS: The Relentless Quest for Value.
The topic is his book The Entrepreneurs: The Relentless Quest for Value.
In this episode of Trend Following Radio we discuss:
You have been a tremendous influence in my trading. I love all your great content/podcast and my favorite one is “Be with the trend, enjoy the ride” (as Tom Basso would say). I’ve been burnt too many times in the past trying to buy the dip for a bounce and the recent quote you shared from Paul Tudor that “Losers average losers” hits it on the nail.
Appreciate all that you do for the trading community.
When I identify a trend and take a long or short position as a result, I typically get stopped out with a loss most of the time when the trend reverses or fails. I set stops at about 10% for new positions. I tend to be late to the trade, so I must be identifying the trend too late. When I do find the stock I purchased or shorted goes in favor of my trade, often I sell/cover too soon and miss out on capturing much larger gains.
This not a wise strategy. You need:
• Exact rules for selecting your tracking portfolio.
• Exact rules for entering your trades at the right time.
• Exact rules for exiting your trades with a loss.
• Exact rules for exiting your trades with a profit.
• Exact rules for how much money to bet on each trade.
My biggest challenge is to find a consistent routine in trading. There are so many opportunities out there and so many strategies, indicators, and so on. It is so easy to get distracted. How to become consistent in every move you take?
Thank you that you are doing all this great work and publishing so much valuable information.
Start with my FAQS below. Remember. You can see the trend following proof. Where is the proof for other “strategies”?