Subscribe now and watch my free trend following VIDEO.

Blog

“If I go short, how can I protect myself from a short squeeze forcing me to return the security at a higher price than I received when I took the short position…”

Posted on by Michael Covel

Feedback in:

Hi Michael,

I am trying to build my own ‘Dragon Portfolio’ as outlined in Chris Cole’s whitepaper titled ‘THE ALLEGORY OF THE HAWK AND SERPENT.’ Commodity trend following is a big part of this portfolio. Chris Cole suggests a simple approach of taking a short or long position on an ETF tracking commodity prices based on whether the current price is above or below the 50 day moving average. If I go short, how can I protect myself from a short squeeze forcing me to return the security at a higher price than I received when I took the short position?

Thank you

Arend

I teach trend following. You don’t trade one market alone leaving yourself open to a short squeeze with trend following.

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.

Ep. 966: William Green Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
William Green
William Green

Subscribe to Trend Following Radio on iTunes

My guest today is William Green. He has written for many publications in the US and Europe, including Time, Fortune, Forbes, Fast Company, The New Yorker, The Spectator (London), and The Economist.

The topic is his book Richer, Wiser, Happier: How the World’s Greatest Investors Win in Markets and Life.

In this episode of Trend Following Radio we discuss:

  • The Greatest American Investors
  • The Greatest Investment Minds
  • Catastrophe and Survival
  • Interviewing The Greatest Investors Experience

Mentions & Resources:

Listen to this episode:

Jump in!

“My biggest challenge is the usual one, buy high and sell lower (mainly due to fear, I guess)…”

Posted on by Michael Covel

Feedback in:

Dear Michael, my biggest challenge is the usual one, buy high and sell lower (mainly due to fear, I guess). I have recently listened to your last 50 podcasts. Have just bought Trend Following book , Complete Turtle Trader and Jack Schwager’s Market Wizards. I already have bit of an idea and have started looking at all my stocks with EMA monthly and weekly and did see how late I sold, instead of selling much earlier, when the trend changed. Thank you for your podcast and for your books, I wish I knew about them many years ago. Best regards, Z.

Keep going on trend following. Start here.

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.

“But in the last month or two, I feel that I have lost my compass as sector rotation continues to see saw back and forth…”

Posted on by Michael Covel

Feedback in:

I have been very pleased with the last two years of trading. But in the last month or two, I feel that I have lost my compass as sector rotation continues to see saw back and forth. I searching for a trend!

It doesn’t sound like you have an exact strategy?

Michael. Oh but I do. I use a combination of Chaikin Analytics and Ichimoku and more. Chaikin provides choices and timing. 27 factors measure fundamentals displayed as red Bear yellow neutral and green bullish. Chaikin Money flow shows institutional buying the oscillator show over sold over bought and relative strength shows strength vs SPY ( I know you hate benchmarking). Screening capabilities and signals also compliment the package. Approach is to identify best assets class sectors then find the best stock or commodities within the sector (or if playing from the short side the worst. Bottom line finds me stocks to consider. Ichimoku gives direction ADX movement potential. With risk management of 3 times the Average trade volume to get out of the trade I don’t use price targets or length of time. As mentioned below right now I’m struggling with finding what are the best sectors. VALUE Real estate | Utilities health care and consumer durables are in a tug of war with GROWTH Tech, Energy, consumer discretionary. I’m of the believe that we are undergoing a rotation but can’t find a direction, thus no trend should just mean I should go on a fishing trip and come back when the markets make up their mind! Each year I have a 30 page document that outlines my trading discipline, strategy, risk management, diversification, position size and more. I am reading your trend following book a chapter a day and have enjoyed the concept. I particularly enjoy the quotes on the side. Today’s winner was Aristotle We are what we repeatedly do. Excellence is not an act, but a habit.

That is all a dead end. Every bit of it. This is straight from the numerous technical analysis cookbooks out there. Run!

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.

Ep. 965: The Tom Basso Book with Michael Covel on Trend Following Radio

Posted on by Michael Covel

Subscribe to Trend Following Radio on iTunes

Please enjoy my monologue The Tom Basso Book with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

Listen to this episode:

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

New Tom Basso Trend Following Book

Posted on by Michael Covel

Out now April 2021. Enjoy!

Trend Following Mindset.

Trend Following Mindset
Trend Following Mindset

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.

“My biggest know challenge is the struggle to constantly changing and tweaking my strategy. I lack confidence in myself and my ability to create a strategy…”

Posted on by Michael Covel

Feedback in:

Hi Michael,

My biggest challenge? I am sure my biggest challenge is something I am unaware of. However, my biggest know challenge is the struggle to constantly changing and tweaking my strategy. I lack confidence in myself and my ability to create a strategy. My warmest greetings form the cold Faroe Islands.

Start here.

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.