Blog

Ep. 669: Harvey Silverglate Interview with Michael Covel on Trend Following Radio

Harvey Silverglate
Harvey Silverglate

Harvey Silverglate is an events attorney with 51 years of experience practicing in courts throughout the country. Harvey is the co-founder of the Foundation for Individual Rights in Education where he serves as the current Chairman of the Board of Directors. He is also author of “Three Felonies A Day: How the Feds Target the Innocent.”

What is Harvey’s current view on the President? He is not a Trump supporter, but does not agree with Robert Mueller and how the legal system is systematically trying to pin him. What Trump has done may be politically unpalatable to some, but he is not doing anything illegal. Harvey uses Mueller to show how an overreaching prosecutor bent on getting his agenda done–get’s it done. Justice, for the most part, has nothing to do with the American legal system today.

Harvey feels we are in an era where people look at the law in an objective way rather than with passion. Colleges pump out politically correct lawyers afraid of standing for what they believe in. Harvey is fighting to reverse that trend.

In this episode of Trend Following Radio:

  • Trump vs. Mueller
  • Overreaching prosecutors
  • Motivations of law enforcement
  • Flaws in the justice system

“We are in a time of troubles right now and it is the obligation of every citizen to rise above it.” – Harvey Silverglate

Mentions & Resources:

“The trend is the trend, no emotion, no guessing…”

Feedback in:

Dear Michael,

I purchased the book, signed up for the emails and I can tell you emphatically the ONE thing I got from all of it is clarity. I used to worry about the news, what the President tweets, the day of the week and other assorted voodoo to make trades. I even signed up for a few services that spewed some of the most indecipherable gibberish while impressing me with their almost perfect timing. I no longer care about any of that. The trend is the trend… no emotion…no guessing.. I’m now pleasantly trading the trend and not worrying about the external nonsense.

Thanks. More resources to consume here.

Reminiscences of a Stock Operator by Edwin Lefèvre
Reminiscences of a Stock Operator by Edwin Lefèvre

“I loved the idea that I could be taught and/or learn the mechanics of trading…”

Feedback in:

Mike,

I know this is way after you asked. I started it initially and put in draft only to re-visit it tonight. No excuses, just didn’t get to it. Hope you are well!

Answers to your questions:

1. What methods or principles were you applying before?

I was applying everything other than trend following. Technical analysis (head-and-shoulders, wedge, etc.), trading too big, trading too often/much, using no data to back up any decision – just trading from the hip.

2. What changed you? Why did you switch?

I have a science background (bio major in college then grad school as a Physician Assistant) so I like to have data to back up arguments, reasons to take action or change behavior, etc. My first intro to Trend Following was “The Complete TurtleTrader“. I loved the idea that I could be taught and/or learn the mechanics of trading. I then really dug in and read “Trend Following” which allowed me to really see the way this type of system could work. There is centuries of data to backup the systems validity and many currently operating managers who are successful in its application (Salem Abraham, Dunn, Henry, Bruce, etc.). These reasons were more than enough for me to commit to learning the technique.

3. How did I help you?

After blowing up my first trading account I changed to trend following. I employed a channel breakout system based on daily closes. I was doing this in a manual way by scanning the markets I was trading every night and placing trades when the system indicated. I struggled with my rules during this period. How EXACTLY did you employ good risk management? What EXACTLY was a good breakout time period (20 days, 30 days, 50 days, 100 days?)? I had a hundred questions that needed more clarity. I then decided to buy your package of information/CDs to really get things dialed in.

I implemented a very comprehensive trading system using your CB system outlined in the material from 2013-2017 when my broker was shut down in the US (FXCM) and I needed to close all my trades down and transfer my account. I took that time to find some way to automate the system with a “robot”, software, whatever you want to call it. The reason for the automation is that I felt like my performance suffered from missing trades. I was not getting hurt by the losing trades because I was using good risk management based on ATR. I was getting hurt by MISSING the good trades, which I F’ing hate! That is the thing that I couldn’t deal with the most was missing a trade because I was on a business trip, or family vacation or I was just being human and not checking it for any number of a hundred reasons.

I have automated my system which answers all the important questions: when to buy, how much to buy, when to get out. My major roll now is just monitoring the system and letting it take and close trades.

Other ways you have helped me:

1. Trend following becomes a way of life… I’ve started looking at everything with the question, “what’s my risk” or “what’s the worst case scenario here” and “what am I willing to lose on taking this chance or bet”. This can be asked of ourselves in relationships, raising kids, sports, etc.

2. You have introduced me to so many amazing thinkers and ideas through your podcast. These have been life changing in some cases. One example: You interviewed a guy named Jason Calacanis who is an Angel investor (I had no clue you could do this!). I bought his book, joined his syndicate and now I’ve invested in 3 startup companies and I’m going out to his “Angel University” this summer to learn more about the trade of Angel Investing. Pretty amazing stuff!

3. You’ve given me advice about travel and were kind enough to give me some ideas when I visited Tokyo.

4. You remind me all the time that you can have a successful business and be “location independent” by living in Vietnam for the past several years.

5. You used an idea that I sent to you as the subject of one of your podcasts (Bezos is a trend follower)… pretty cool!

I’m looking forward to making it to Vietnam and sharing a beer with you!

Thanks for everything. I continue to listen to every episode of the podcast even if it’s a month late. They all have something to offer to the person willing to really listen. In fact, I think the ones that I’ve gone into thinking I wasn’t going to like are the ones I’ve gotten the most out of!

Keep kicking ass,
[Name]

Thanks!

Great feedback.

Up and Down
Up and Down

“So far this year I have listened to about 250 of your podcasts…”

Feedback in:

I was never big into trading/investing before this year. So far this year I have listened to about 250 of your podcasts. I’ve bought Trend Following but I’ve not read it, yet. I have listened to The Complete TurtleTrader, and Trend Commandments (Audible has been a great help in this regard). So, I was easily able to approach this as an empty vessel. All of the thing that you say people need to unlearn, I’ve been rejecting from the start. Most of that actually doesn’t make logical sense if it wasn’t crammed into your head before. Unless I’m just the odd one out.

Sounds like you are on a good path. More recommended books.

Trend Following
Trend Following

“One nagging concern I’d like to ask you about…”

Feedback in:

Hi Mike,

Love your work and am a subscriber about to begin trend trading myself. One nagging concern I’d like to ask you about. I’ve read about every piece of material you’ve written and watched computerized trading’s rise to prominence since you started writing. In today’s computer programmed trading environment can a newbie today equipped with your teachings still succeed?

Thanks for your thoughts on this. I’m sure it’s a common question.

My longer answer is here.

Michael Covel and Larry Hite
Michael Covel and Larry Hite

“I assured him it’s part of your raw charm…”

Feedback in:

Hola Michael,

Here’s a fun comment to brighten your day. I often drive to pick up my son from School in Singapore and we listen to Trend Following Radio. Today you dropped a few F-Bombs and I explained to Vaughan (age 10 named after Stevie) that you’re a little rough around the edges at times; to which he responded, “Maybe we should sand him.” But I assured him it’s part of your raw charm and no need.

Great stuff on the podcast as always. As a like minded American on year 12 of my expat adventure in Singapore, I too enjoy the “low noise” and high excitement in Asia. Look forward to catching up for a great Vietnam coffee at the Hyatt one day (no crappy clear Asian beer for me either). I know we’ll have a lot of cool stuff to chat about as I’m a crazy serial entrepreneur trying to live the dream. Actually not trying, Doing. Got no complaints.

Keep up the awesome podcasts and if Jim isn’t in town your next trip to Singapore just give a shout and we’ll chew the fat, literally. The American club just opened a proper Texas BBQ restaurant poolside and as a native Texan I give it my full approval.

Cheers
[Name]

Thanks!

My early baseball career forever burdened me with some occasional raw language.

The Trend Following Team
The Trend Following Team