The Trend Following Blog of Author Michael Covel

“The fact that I’m 59 and I’m just learning the market…”

Posted on June 30, 2022 by Michael Covel

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My biggest challenges are the fact that I’m 59 and I’m just learning the market, and I’m an electrician so I have to work full time (I moved to afternoons so I can trade until 1:30 pm) but I’m close to having 25k in my trading account so after I get a couple of surgeries that I need (hernia and a clogged artery) I’d like to quit my job and trade full time.

Rob K.

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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.

“Larry Hite interview is probably your best interview by and far…”

Posted on June 30, 2022 by Michael Covel

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Hello Mike, I hope you are well. Thanks for this great interview. I just wanted to say in my humble opinion, the Larry Hite interview is probably your best interview by and far. I would love to hear more from Larry, he has a unique heart and he talks with no filters on. Just let him talk please as much as possible. I am keen to hear anything that he might say about life as well as trading. Also please ask his leverage ratio next time you speak, I think it is less than 3 to 1 per his book but just to clarify.

Best,
AD

Thanks.

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.

“Complicated math is not necessary to get 95+% of the problem solved…”

Posted on June 30, 2022 by Michael Covel

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Michael, You probably remember that Hite was one of my inspirations for the position sizing work I did way back when. Brilliant in his simplicity. Complicated math is not necessary to get 95+% of the problem solved and he did that for sure. His stories are so different from anything in my life, I love hearing how someone else, who came up a bit before me, proceeded from place to place and try to imagine his world as he started out. Fascinating interview. Keep up the great work.

Thanks. He’s great!

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.

“I am still unable to give a short, comprehensive definition of trend following…”

Posted on June 30, 2022 by Michael Covel

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My biggest challenge with trading is waiting too long to cut my losses on my bad investments. I look forward to learning more about trend following, to be honest, I have read your book and listened to a number of your podcasts, but I am still unable to give a short, comprehensive definition of trend following. One quick question, I have often heard it is good to be a contrarian investor and go against the crowd, is this the opposite of trend following?

Thanks again,
John A.

This is trend following:

• 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.

Ep. 1088: Larry Hite Interview with Michael Covel on Trend Following Radio

Posted on June 26, 2022June 28, 2022 by Michael Covel

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My guest today is Larry Hite, a hedge fund manager, who, along with those like Ed Seykota, is one of the forefathers of system trading. He has been profiled and recognized as one of the best in the industry in numerous major international publications. He co-founded Mint Investments in 1981. By 1990, Mint had become the largest Commodity Trading Advisor in the world in terms of assets under management. In 1990, Jack Schwager dedicated a chapter of his bestselling book, Market Wizards to Hite’s trading and risk management philosophy.

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

“Don’t bet your deli to win a pickle.”
Crypto and trend following
The asymmetric option of David Ricardo’s golden rules
Buy, sell, and bet the correct way
A system where you cut your losses and let your winners run on
The historic trend following performance of 2022
Larry’s dyslexia

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“Trend following is one strategy. Day trading is something else…”

Posted on June 26, 2022 by Michael Covel

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I’m definitely attracted to the simplicity of what you’re teaching. My major question is this: You’ve mentioned that day trading is garbage, but if the stock market is fractal, why wouldn’t trend following work on a shorter timeframe? I’ve been following Tim Sykes and Nate Michaud for quite a while now, and both of them do very well with short-term trading.

Thanks Mike, and have a great day!

Trend following is one strategy. Day trading is something else. Fractal or not, two different philosophies, two different strategies and two different sources of alpha.

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.