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Feedback in:

Hey Michael,

I just want to start off by saying I appreciate your podcast and your books of truth and honesty. My name is Gracie and I’ve been looking into trading but it has been a mess. I was looking for advice on how to start but all I could see were terrible YouTube gurus and scammers; everyone was just trying to sell something and I could not for the life of me understand how to even begin trading.

Some people were saying they had the “secret strategy,” others said their course “solved” all problems, and others said they knew what the markets were going to do weeks in advance which dumbfounded me. I thought to myself “How do they know that?” I thought I needed to learn every fact about every market if I wanted to trade, which seemed completely unattainable. That’s when my dad recommended looking at Ed Seykota, and somehow along the way I found your book “Trend Following” and it has been a life-saver. I feel like I actually have a foundation now to begin trading and I’m so grateful.

With all of that being said, I’ve been listening to your podcasts as well, and at the end you said to email you for the steps on how to begin trend following, so here I am! I also had some questions I wanted to ask where I needed a bit of clarity. Maybe they’re stupid questions, I don’t know, but I figured if I could ask anyone it would be you, so here it goes:

1.) If I have a [number] trading account to start with, is that enough? I don’t want to get stopped out of a position so early because my stop is going to be quite close due to proper risk management on an account of that size. I don’t have a ton of money currently, but I figured if I practice proper trend following techniques and rules then gradually over time I could be profitable if disciplined.

2.) How long should I keep a position if it’s going against me? I’ve heard that if it’s going against you for more than two weeks then cut it, but I also heard that in trend following you can be down money for a while but it’s important to stick with it because that’s just the flow of the markets and that the big profits are right around the corner. I just need a bit of clarity on this.

3.) I’m wondering how I find a 55 day high or a 2 week low? Do I manually count the days and go through the charts? Or do I use a simple moving average? I am a total rookie please forgive my ignorance.

4.) How volatile of a market should I trade? I’m willing to take risks but don’t have endless capital.

I know for sure in the future I will have more questions as my trading journey continues, so I hope you reply to this email to help me out. Again, I really appreciate the work you do to bring the truth about trading to us. I would be at the mercy of scammers and conmen if I hadn’t come across your book.

Looking forward to hearing from you,
Gracie D.

Start here, here, here and here.

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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.

Subscribe to Trend Following Radio on iTunes

My guest today is Will Cady, Reddit’s Global Brand Ambassador and founding Head of Creative Strategy. In his role as strategist, Cady has leveraged his uniquely blended approach of creativity and mysticism to counsel business leaders toward impactful, empathetic marketing of power house brands in tech, including Apple, Google, Samsung, T-Mobile, AT&T, and Adobe. He has worked with major household brands such as Toyota, LEGO, McDonald’s, Chipotle, and Coca-Cola.

The topic is his book Which Way Is North: A Creative Compass for Makers, Marketers, and Mystics.

In this episode of Trend Following Radio we discuss:

• Creativity and its origins
• Balancing authenticity and delegation
• Creativity with constraints and maximal control
• The intersection of mysticism, marketing, and making
• Letting go of attachments
• Modern Western culture and individualism
• Productivity and time management
• Relationship of anxiety and creativity

Mentions & Resources:

• Will Cady
• Which Way Is North: A Creative Compass for Makers, Marketers, and Mystics
• Ben Affleck
• Brian Wilson
• Kurt Cobain
• Dave Grohl

Listen to this episode:

• Listen to this podcast on iTunes. (Please leave a rating!)
• Listen on Spotify.
• Libysn RSS.
• Download as MP3 by right-clicking here and choosing “save as.”
• Free Video.

Jump in!

Subscribe to Trend Following Radio on iTunes

Please enjoy my monologue No Thought Control on Trend Following Radio.

Listen to this episode:

• Listen to this podcast on iTunes. (Please leave a rating!)
• Listen on Spotify.
• Libysn RSS.
• Download as MP3 by right-clicking here and choosing “save as.”
• Free Video.

Want to learn more Trend Following? Watch my video here.

Feedback in:

Hello Michael,

A few years ago I read one of the first editions of your Trend Following book. Now, while on an extended vacation in the Dominican Republic I bought and read the latest edition. I currently have three multi family rental properties in Miami and am thinking of selling them. Two properties are within my self directed Solo 401K account, the other was inherited back in 2000. I expect that after selling them I will have around $750K in the Solo 401K and $650K outside the Solo 401K to invest.

My dilemma is: Should I try to manage these accounts myself or give them to some outfit like Dunn Capital to manage? If I were to liquidate the rentals I would need between $5K and $6K to replace the current rental income stream; around 5% of the combined investment accounts.

I am 77 years old, my wife is 60. Both US citizens with a wish to travel more. All our children are financially stable and do not require any financial assistance from us. I have always been fascinated by financial markets and fairly knowledgeable/literate of different markets, instruments, risks. (My bachelor’s major was in Macro Economics back in the 1970’s) I understand the risk/reward relationship and would consider myself somewhat of a risk taker but take into account my age which limits the recovery time available were I to suffer a catastrophic loss.

Here are some questions I have:

Would your Flagship course provide me with a starting platform to start trading from scratch?

Would it allow me to develop and test a Trend Following Program?

How difficult is it to develop and test such a program?

Are there programs available to purchase and maybe modify to accommodate/fit my needs?

Or would it be best to let a professional manage the portfolio?

Thanks,
Hector P.

1. My Flagship is for those seeking to trade themselves or invest with others or a combination of both. A foundation is needed no matter your choice. Flagship is that. Flagship will give you the insights you need to decide DIY or hire someone.

2. This should give a better understanding of how I see testing/software.

3. Third party software recommendations are part of Flagship.

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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.

Feedback in:

Michael,

Since our last email, I have managed to get a trend following system up and running. I am fairly pleased with what I’ve constructed, but I think it might be time to take it to the next level. As such, I’m interested in learning more about what your training entails.

I got a chance to read through the link you provided above. If I follow it appears the Standard Trading and Systems Course consists of a written “how to” set of instructions and a three month period of emailed questions – is that correct? Is there any opportunity for one on one interaction?

Specifically, I am hoping to address the below. We can leave these for once I am officially registered but I wanted to mention my expectations should I choose to move forward with your course.

Portfolio construction – Dollars allocated for both the equities and rates portions of my portfolio are fairly concentrated into the European and US market. In the equity sector I have invested in some country-based ETFs, but, given my limited capital, I can’t deploy the same risk sizing as I can for futures. As far as rates go, I find myself even more restricted, with the Euribor being the lone basket outside of shorter term German bunds and US treasuries.

Risk management – I’ve been fairly cautious in the system I’ve set up, but seeing as this is my first time trend following, and even my first time trading futures, I suspect it is best that I don’t simply rely on my own research.

Trading platform – I have myself set up on Tradestation but there are some aspects that could be improved.

For one, I am earning no interest on my capital. And I am lacking access to some of the futures contracts I would like to eventually trade. Any recommendations would be appreciated.

Anyways, I appreciate you having introduced me to the trend following approach – it has already been an exciting journey – and I hope your training is what I am looking for in terms of next steps.

Mike K.

These are the exact issues that make my training.

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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.

Subscribe to Trend Following Radio on iTunes

My guest today is Andrew McAfee, a principal research scientist at MIT and co-founder and co-director of the MIT Initiative on the Digital Economy at the MIT Sloan School of Management. He studies how digital technologies are changing the world. Throughout his career, McAfee has written and co-written several books on digital technology and related topics. He speaks frequently to both academic and industry audiences.

The topic is The Geek Way: The Radical Mindset that Drives Extraordinary Results.

In this episode of Trend Following Radio we discuss:

• Geek way mindset
• Evolution of technology
• Successful geek-driven companies
• Challenges faced by geeks in different industries
• Netflix and its success
• Quality vs quantity in content production
• Opportunity and challenges faced by streaming platforms

Mentions & Resources:

• Andrew McAfee
• The Geek Way: The Radical Mindset that Drives Extraordinary Results
• No Rules Rules: Netflix and the Culture of Reinvention by Reed Hastings and Erin Mayer
• Andrew McAfee’s Website
• Andrew McAfee on Twitter

Listen to this episode:

• Listen to this podcast on iTunes. (Please leave a rating!)
• Listen on Spotify.
• Libysn RSS.
• Download as MP3 by right-clicking here and choosing “save as.”
• Free Video.

Jump in!

Feedback in:

Dear Sir,

I hope you are doing well. I am a student who lives in South Korea with a keen interest in trend following and have been reading your books.

I would like to pose a question regarding the relationship between algorithmic trading programs and trends. Many people assert that trend following will remain valid indefinitely because human nature remains constant. However, to the best of my knowledge, in today’s futures market, algorithmic trading programs dominate while human manual trading is minimal.

If algorithmic trading programs continue to gain a larger share in the future or stock markets, it raises the question of whether trend following, as practiced by individual traders like myself, will still be effective. This is because trend following relies on the assumption that “human” nature remains unchanged, while individual traders will be pitted against these “programs.”

I am curious about how humans can effectively navigate the rapid changes and whipsaw movements created by many algorithmic programs, using trend following.

Sincerely,
Yushin H.

You follow price. You trade price. All markets are not flat lines with no trends. Trends are everywhere. You are making the case that algo trading has made trend following not viable, but your point is hypothetical, not reality. Whipsaws are not a new concept. They are a fact of life.

The nitty gritty details are here.

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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.