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Please enjoy my monologue Trend Following Fifth Edition with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
Want to learn more Trend Following? Watch my video here.
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Good evening Michael,
I have to say, you are a deep breath of fresh air in a very choppy sea of misguided information.
As with a lot of traders out there,I have been up and mostly down thus far in my trading career. I seem to have been going about it all wrong trying to time the market, first through day trading and then gradually trading longer term both ways utilizing momentum indicators. I have to say, it has been a long a expensive journey, in fact years after getting more and more confused and thoroughly pissed off at myself for not trading with the trend and not catching the big trends in the market. In hind sight the larger moves seemed to be starring me right in the face! So after all that pain I am convinced that trading from a longer term perspective, using support and resistance as my guide in the longer time frames and catching the larger moves in the markets is the only way to trade.
I realized this some time ago but was to stubborn to change my bad habits, you know, that, “I can beat the market attitude.” Well this has been quite a humbling journey to say the least. The other night after getting completely and absolutely feed up with the choices I was making I decided as a last resort I was just going to trade with the trend and by that I mean when price makes a higher high after making a higher low, I will get long and stay in the trade until the trend changes. That was when I decided to search for trend trading to see if anyone else had come to that same conclusion. Low and behold it brought me to your site. After reading and listening to a few of your podcasts I believe that I am absolutely heading in the right direction. Thanks for listening to my personal rant and thank you so much for all the relevant information that you bring to the trading community.
The best to you my friend!
[Name]
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
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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.
Subscribe to Trend Following Radio on iTunes
My guest today is Daphne Chua, a certified yoga therapist, movement educator, body worker, Anusara Inspire teacher, E-RYT500 Yoga Alliance Continuing Education Provider (YACEP), and has been running her own embodiment and inquiry-based therapeutic training modules for the last 3 years. She has completed over 2,000 hours of teacher trainings and taught over 3,000 hours in classes, private sessions, special needs yoga, workshops, retreats, and teacher trainings.
The topic is awareness of the mind-body connection.
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Subscribe to Trend Following Radio on iTunes
Please enjoy my monologue A New Mega Collection with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
Want to learn more Trend Following? Watch my video here.
Food for thought:
Enjoy.
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 Peter Borish, the chief strategist of Quad Capital. He is a trading coach, helps recruit new traders and develop the company’s trading strategy. He also is a founding member of the Robin Hood Foundation. The Robin Hood Foundation has made great strides in their charity work and continue to do bigger and better things. Peter believes that the quality of life for those around you is much more important than the material possessions that can be accumulated.
The topic is trading.
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Dear Sir/Madam,
I am curious as to what your thoughts are on this topic. I have recently been reading the book Trend Following by Michael Covel. I think it is an interesting book, detailing some of the successful trend traders and why they were so successful (mostly their down-to-earth simplicity first mentality it seems). However, he makes a number of statements that are difficult for me to agree with. The first is that trend following is not predicting the market, please allow me to explain. If I paraphrase him: “Trend following is not predicting the market because the method simply waits for a trend to occur upwards or downwards, and when it is confirmed via some methodology, you get on the trend and ride it out.” The problem I have with this is the fact that it is simply impossible to invest in the stock market without some degree of prediction. In this situation, a trader follows a trend because he has ‘confirmed’ it. Yet this confirming the trend, which simply means that the trader believes that it is indeed a lasting trend, is still nothing but predicting that it is indeed a trend. For example, if a trader gets on a trend when a stock has risen from $80 to $100, if he is in no way predicting the market, there is also no way to say if this trend will continue or not. There are two options, yes or no, and because the trader makes ‘no predictions’ the odds are simply even. However, the trader expects the trend to continue, based on the fact that the trend has started and often continues when it starts in a particular fashion. That is still a prediction. Then why is it that Michael Covel and other trend traders so often make the statement that they don’t predict the markets, they just ‘follow’ the markets, when you only follow someone or something when you have an idea of where it is going?
Furthermore, the statement that the stock market is a zero sum game seems flawed. The overall economy sees an average growth of around 1.9% yearly. That means that if I were to pick 100 random stocks from every sector one year and simply wait it out, I would expect to see a portfolio growth of around 1.9%, following the average economy. However, if the stock market is a zero sum game, I would expect to see a growth of exactly 0%, because on average, I would lose as much as I would win. Is this because inflation is also accounted for in the book? If so, it is not made clear.
I would like to make clear I am in no way trying to undermine the method of trend following, I am simply eager to learn. I look forward to hearing your opinion on the subject.
Sincerely,
[Name]
Futures markets are zero sum. And you don’t trend follow one market in isolation. Need a basket of markets and from that basket every year there is no way, no way at all, to predict the yearly winners.
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.