Blog

Feedback in:

Hi Michael,

My biggest challenge is that I don’t have a system.

I look at the news and follow Stocktwits for instance.

Further on I check the earnings dates and look at P/E.

And last I follow my gut feelings.

So it’s some kind of a system but a very bad one.

I want to learn a trading system on which my risk is managed.

One of the things is when to get out of a stock.

I’m holding a stock called Nortech systems.

As I started it want up (in one day) real quick, so I bought shares.

The volume was good.

As it dropped I bought more shares to get a lower overall price.

Now I’m stuck with this as the price has gone from my my price of 5,10 to 3,94.

And the volume is almost non-existing.

As I’ve bought more shares this stock is about 40% om my total trading money (total is 25k dollar)

So I lost allot of virtual money on this one.

There are a few reasons I still own the stock.

– The fundamentals are looking good.

– I don’t want to sell because I loose about 3000 dollar which is more than 10% of my trading power.

– (this is a stupid one) I saw that Renaissance has allot of money in this stock.

As you can see my strategy is very poor.

Thank you for your help.

With kind regards,

Pieter W.

You don’t need:

P/E, gut, news, earnings dates.

Those are dead ends.

Start here: www.trendfollowing.com/faqs

---

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:

Hello Michael,

To be honest, I just started learning how to trade. I didn’t even know what Forex was. I live near Tijuana Mexico so I knew about currency exchange but not to the level of the Forex market. I created a demo account with Trading View and I have been practicing ever since.

The problem I have noticed so far, I have no plan. I jump into trades on guessing and hopes. When I look back at certain pairs I notice thee trends that occurred and think to myself, “wow, if I had entered there and exited there, man could I have struck it rich”. But I don’t know how to recognize those trends before they happen.

I would love to know how to identify the start of a trend. And of course the end of one.

The passion is there, I just need the proper training.

Rolando

You say: “But I don’t know how to recognize those trends before they happen.”

You can’t do that. It’s impossible.

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.

Subscribe to Trend Following Radio on iTunes

Please enjoy my monologue You Are Supposed to Think Like the Mob with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

Listen to this episode:

• Listen to this podcast on iTunes. (Please leave a rating!)
• Listen on Spotify.
• Listen on Stitcher.
• 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:

Hi Michael,

Seasons greetings and thanks for a thought-provoking response.

Indeed, unique is a vague and unhelpful descriptor of your many talents, so why the non-specific adjective?

Caveats:

At the time, I was unfamiliar with you beyond your books and presentation. I hadn’t googled you but you definitely have a distinct voice among authors/speakers/educators.

Also a confounding factor–the end the workday excuse–dictating on autopilot, with emails not edited for much effect…

I simply wished to convey that you present as a passionate and thoughtful individual who, with humor and humility, entertains and instills confidence in your audience.

Reading Big Blue, Complete TurtleTrader and currently listening to Ep. 816, a Trading Primer. All have been very helpful.

I was happy to realize I’ve been following some of the basic strategies of trend following.

Currently, my passion is to implement a time-efficient and systematic trend following approach.

Enjoying the process and appreciate your role in it.

I wish you the best,

Ben L.

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.

Subscribe to Trend Following Radio on iTunes

My guest today is Chris Varelas, a co-founding partner of Riverwood Capital. Prior to establishing Riverwood, Chris worked at Salomon Brothers/Citi as Global Head of Technology, Media & Telecom Investment Banking, Head of Citi’s National Investment Bank, member of Citi’s Global Operating Committee and Culture Czar for all of Citi. Chris was selected as one of the 100 most important deal makers by the New York Times and was named top “rainmaker’ in the technology sector by Dealmaker Magazine. Chris earned an MBA from the Wharton School of Business and a BA from Occidental College in Los Angeles, California for which he serves on the Board of Trustees. He is a moderator for the Aspen Institute for which he recently founded the Aspen Finance Fellows program created to produce effective enlightened leaders in the financial services industry.

The topic is his book How Money Became Dangerous.

In this episode of Trend Following Radio we discuss:

• Chris brings a provocative and entertaining voyage into the turbulent heart of modern money that sheds new light on the rise of our threatening and complicated financial system, how money became our adversary, and why finding a new course is crucial to a healthy society.

Mentions & Resources:

• Chris Varelas

Listen to this episode:

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

Jump in!

Feedback in:

Hi Michael,

I’ve been listening to your pod casts for a few days now after having discovered your Trend Following book on audible. I’m probably a quarter of the way through the book, so still have a bunch to learn. I just wanted to drop you an email to see if I could get the trend following steps that you mention on your podcast. I’ve just began the process of becoming interested in trading and trying to learn for the last month or two, however until I found your work I had been looking at studying technical analysis which, given your chat doesn’t seem to be the way forward.

I am interested in learning the best and most effective way to become successful at trading but it seems that there is quite a lot of competing ideas and misinformation available to people that are trying to learn. I’d prefer not to put a bunch of time into methods that are pointless, so any information you have on the best way forward would be appreciated.

I recently heard your interview on the IG trading platform, which I’ve signed up to on a demo account to practice before going live maybe next year. I wondered what your thoughts were on their work and what they produce? I understood from your previous podcasts the conversations with your guests that discussion about fundamentals and perhaps technicals is just done for entertainments sake on the mainstream TV and news networks. I wondered if you had a different opinion on IG as you took time to be participate on it. I’m asking as I have been joining their webinars and online academy.

Also I wondered if you think that a trend following strategy can be achieved successfully if starting with a small account? It was my intention to have about £4000 to £5000 available to be ok with potentially loosing I guess, but I got the impression from the discussion on your podcasts that significantly more might be needed in order to be able to stick with a trend/not being stopped out?

Anyway thanks for your time, your podcast is really entertaining by the way and as someone who knows nothing really about trading/finance or business, it’s been really interesting and enjoyable to listen to your work.

Cheers,

Lara

Let me be very direct…

Start here.

There here and here and here.

Starting capital? Go 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.

Feedback in:

Mike,

My name is Max F. I am a recent college grad who is at the beginning years of my career as a financial planner. I have, over the past 6 months, started researching futures and derivatives trading. It is becoming a growing passion of mine. Through my deep Google searches, I came across your podcast and have been hooked ever since. The outspokenness in expressing your opinion suits exactly what everyone should look for in a mentor, as there is no beating around the bush. I wanted to thank you for all the time you put into all the podcast episodes and for being a resource for me at these beginning stages. If there is anything I can ever do for you to return the favor please feel free to reach out!

I have not read any of your books yet but plan on doing so after I finish the first Market Wizards book. Which one of your books would you recommend I start with? I was also hoping you could shoot me over the trend following the steps you discuss in the last bit of your podcasts.

I hope to hear from you soon! Have a great Thanksgiving.

Thanks again,

Max

Thanks.

Start with Trend Following fifth edition.

---

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.