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Amplify the Fiction Hide the Truth with Michael Covel on Trend Following Radio.

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I began with day trading in a chat room (BearBullTraders). I think the biggest challenge I have faced is to understand that price move in waves. Its not about being right or wrong, its about managing risk. And after reading your book that I just finished today at work, its obvious that I was buying falling stocks and shorting strong ones. basically trading counter Trend 100% of the time.

Lately, (2 months) I switched to swing trading and I was developing my own strategy based around the Daily200SMA trying to catch the biggest chunk of the trend, back testing (looking at charts only without soft wares etc.)

Took me about 2/3rd of the book to understand that every story, quotes, or stats, or anything in the book is just to make us understand only one thing, we need to follow the trend. So I guess you received a lot of message saying there was not enough “Strategy” or indicator things in the book.

I really love the part about the 10x100sma which was basically what I was doing but with the 200sma AND I really discovered the Donchian Channels. I love that concept since it is based on actual price and not an average.

Vincent

Stay on the trend following path!

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Hi Michael,

My biggest challenge is knowing when to get in and out of a stock. I have lost a lot of money by getting out too soon or waiting to long to leave.

Sarah

I see it more than timing. A lot more. 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.

See my FAQS.

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To give a background, I am not full time trader but I would like to be, I work as Group Product Manager for Cisco and doing well. I do have the courage to become fully independent and I love stock market and even though I made losses with F&O positions my confidence didn’t go down.

What I like to say, my ability to enter and exit stocks in pure equity delivery positions have been good. To put thing in perspective I spent 30 mins a day in trading, with a capital of say $10k-$12k I have made $1k a week. Where I have failed is my over indulgence to over trade and this is where I ended up taking F&O positions and end up booking losses.

Two things still I like to highlight I lack are:

1. I suck at F&O
2. I lack the ability to hold investments for longer duration (5+ years I have not held any stock more than 5 years because of trading mindset and not investment mindset)

Thank you for listening.

Regards,
Suman

I don’t detect a concrete system here. Too subjective. Read up.

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Gravity affects every aspect of our physical being, but there’s a psychological force just as powerful―yet almost nobody has heard of it. It’s responsible for bringing groups of people together and pulling them apart, making certain goals attractive to some and not to others, and fueling cycles of anxiety and conflict. Luke Burgis draws on the work of French polymath René Girard to bring this hidden force to light and reveals how it shapes our lives and societies.

According to Girard, humans don’t desire anything independently. Human desire is mimetic―we imitate what other people want. This affects the way we choose partners, friends, careers, clothes, and vacation destinations. Mimetic desire is responsible for the formation of our very identities. It explains the enduring relevancy of Shakespeare’s plays, why Peter Thiel decided to be the first investor in Facebook, and why our world is growing more divided as it becomes more connected.

In his new book Wanting Burgis also shows that conflict does not arise because of our differences―it comes from our sameness. Because we learn to want what other people want, we often end up competing for the same things. Ignoring our large similarities, we cling to our perceived differences.

Drawing on his experience as an entrepreneur, teacher, and student of classical philosophy and theology, Burgis shares tactics that help turn blind wanting into intentional wanting–not by trying to rid ourselves of desire, but by desiring differently. It’s possible to be more in control of the things we want, to achieve more independence from trends and bubbles, and to find more meaning in our work and lives.

The future will be shaped by our desires. Burgis shows us in Wanting how to desire a better one.

Bio: Luke Burgis is the director of programs at the Ciocca Center for Principled Entrepreneurship at the Catholic University of America, where he also teaches business and develops new education initiatives.

In this episode of Trend Following Radio:

• Definition of Mimetic Desire
• Concept of Mimetic Desire
• What is Mimesis
• Mimetic Behavior
• Zero to One Book
• The Power of Mimetic Desire
• Understanding What We Really Want
• Everyone Has A Purpose
• Creating a Value

Mentions & Resources:

• Luke Burgis
• Wanting: The Power of Mimetic Desire in Everyday Life
• Mimesis
• René Girard
• Peter Thiel
• Facebook
• Clubhouse
• Instagram
• lukeburgis.com
• @lukeburgis

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Michael, I have spent some time thinking about the underlying forces of the markets and I believe I have the answer. The market moves in three basic ways. Trend, cycles and breakouts. The mind of man/woman drives the market but which mind. Science says we have three brains. One in our head, one in our heart and one in our gut. So what does what! The head nuts things out and wants to find trends. The heart wants cycles and looks for seasonal patterns. The gut is ready and always looking for breakouts and disaster and and fat tails, the fight or flight response. This is why the market is so hard to understand, there are three brains at work all the time. Only occasionally do they all agree.

Regards, Kalvert

Trend followers don’t try to understand markets. Why not just make money instead?

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Hi Michael, I have been listening to your podcast for about three years now. I have to say your way of thinking and framing the world has changed my life from investing to even how I run my business. I have read one of your books, Trend following the latest edition. And recently started the new one with Tom Basso. I’m not trying to kiss your ass or anything, but I appreciate your insight, no f******* bullshit approach to business and investing. I tend to drop a lot of F bombs, my wife always gives me shit about it, I have to be careful i have two young boys running around. To get the fucking point, I love trading, and I am very interested in trend folowing. I have been trading for about 5 years now and I try to do it on the side since my business and family keep me very busy. How do I adopt a very focused, consistent trend following approach to the markets? How do I develop a system that I can follow on a regular basis and not get bogged down by the random noise of the market? [read] I’m interested in your education and products. How does it work, how much does it cost, what can I expect to learn and get from it. Keep up the good work, I recently sent your video to one of my old profs at the university of Guelph, someone who has great insight and influence in my line of business. A very acclaimed and successful professor. He does very interesting research in my industry, hospitality. An industry somewhat neglected and heavily affected by the pandemic recently. We both really enjoyed your interview with Hubert Joly, a very refreshing approach to leadership and business. If one day you’re looking for a very interesting guest, look no further, I can give you his credentials. Anyways I wish you well, and long live the trend

Joe

Thanks for the nice words! Start here and here.