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Please enjoy my monologue The Value of Fundamentals with Michael Covel on Trend Following Radio.
Feedback in for Larry, but sent to me:
Dear Mr. Hite,
I know its unlikely this ever reaches you, but its a Tuesday night at 20:40, so what the hell, why not.
I read your book (well read some, listened to most) The Rule, and you had me hooked from the jump. I felt like I really related to what you were saying. Not just in your struggles, but also on how you view and comprehend things.
I had my share of struggles in school. Not because I couldn’t keep up, my test scores were very high. My high school math teacher even made me retake a exam in the library alone because he thought i cheated (which I ended up scoring higher on. less distractions, and a whole lot of spite).
I also feel strongly about doing what I want, when I want. It even goes a little further in the sense of if I don’t want to do it, I’m probably going to evaluate the situation, and find a way to not do it that’s within the rules, or a rule that says I can’t do it.
I’ve always been intrigued by the market but always thought it was out of reach. I never went to college. I spent most of my early 20’s working manual labor factory jobs which I hated. Magically I stumbled my way into a sales job as a freight broker. I’ll tell you what I can sell the shit out of anything. I was adopted from Korea and growing up always struggled with knowing who i was which really paid off for sales because I have the innate ability to figure out who they need me to be and just be that person. First year presidents club, fastest to do it in company, number 1 closer in company for 4 quarters, number one in region for revenue, and I had the highest success rate for people i trained. I left the corporate world and went out on my own. Although good at it, I don’t enjoy it.
3 months ago, I stumbled on a add for a Futures Prop Firm. I only had a base idea of what Futures were, I have always been interested but thought i lacked capital to do it. This was my lightbulb moment. I get to trade with leverage. I can control my downside with whatever stoploss I set, and my overall downside is limited to my initial investment? Yeah I was sold.
Now I’m no stranger to gambling. As in I paid my rent by gambling through covid. I figured, worst case scenario if i pick up or down based on literally nothing that gives me a 50% chance as long as I hold a 2 to 1 profit to loss ratio that I’m profitable. if i run bad to to 33% I’ll martingale to recoup or go to 3 to 1 risk etc. Then throw in any knowledge I get on top of great odds, leverage, and downside protection, that’s basically casino edge. Anything that I can let run past 2 to 1 is an exponential bonus. Also, my stop loss is a dollar amount not a tick count. So if I’m going to lose X it doesn’t matter if I’m in for 1 contract or 3 (that’s the max i was allowed) but if I’m trying to make 1000$ a day its much easier to catch a 17 pt trade than a 50 point trade.
Needless to say I spent the next month-ish trying to learn as much as i could. I settled on a strategy (opening range break / break and retest of key levels of liquidity). They made sense to me, ride the wave, when the wave hits a wall wait and see if it goes through the wall or bounces off it then get back on the wave. I signed up for my challenge and passed it first try on the second morning (had to wait till the 3rd day because of min trading days). Since then I’ve passed 10+ more lost 3 but have consistently taken payouts.
So the whole point of this, if it actually reached you (sorry for it being so long when the brain starts going it just keeps going). I want to learn as much as I can, because I mean I basically know nothing. My question is, what do you think would be most important for a new trader to focus on? What do you think will be important in the near future? Meaning, are there ebbs and flows but principal stays the same. Or do markets change and evolve and does the way we perceive and handle them need to evolve as well?
As helpful as the internet is as a tool. It’s also difficult to decipher what’s just noise or a marketing scheme and what’s good advice. So I figured, you’ve been around the block a time or two. Might as well take a shot and ask.
Thank you,
Nick L.
Larry’s book. My books. Jack Schwager’s books. Jump in.
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Feedback in:
My current hangup is learning the TradeStation platform. I’ve been through lots of their tutorials but their screens never look like mine or have the same setup to find what to click on, where they are, etc. I’ll probably abuse the customer service line until I get what I need. Lol
Leslie M.
You need a technique before software.
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:
Hi, Michael.
Talking about my biggest challenge [on trading] right now; I recently blew a $1500 account because I haven’t learned risk management before I started trading.
Your book (Trend Following) was introduced in a trading course by [name] as a must read for anyone serious about trading. I have purchased two of your titles today on Audible. I am presently on chapter 5 of The Complete TurtleTrader.
Maximum regards.
Matthew
Keep going!
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,
Thank you for the email. I am currently looking to win. Funny thing you mentioned your friends running to the gov’t for a secure paycheck. I am currently an Intelligence Analyst for DoD investigating money laundering and drug traffickers. As an analyst, my biggest fear is “analysis paralysis” too much information, so much noise, that you don’t know which way to go. That’s how I feel right now with stock trading. I need a clear path, a system that has rules and can point me in the right direction without a lot of complicated bluff.
Thanks for listening!
Respectfully,
Name
Nice feedback. Have you read any of my books? I can help you get there faster.
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:
I use trailing stop orders all the time, and saved me a small fortune.
You’re the best.
Greg A.
Thx Greg!
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 Violence with Michael Covel on Trend Following Radio.