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Another great confirmation from non other than Mr Tim Ferriss:

“People view all of these people as massive risk-takers, and when you actually sit down and talk to these guys, you realise they are expert risk mitigators. I think it’s very easy to come to the mistaken conclusion in business, for example, that you only win big if you bet the farm. And in fact, when I talk to some of these companies here in Silicon Valley for instance that have become worth billions and billions of dollars… in my experience, in no cases have they bet the farm. They have evaluated the downside – they’ve tried to measure the maximum allowable downside – they know not only their bet and their bet size, but when they’re going to fold. They have an exit strategy for minimizing or capping losses… I remember hearing an expression, I don’t know who to attribute this to, but it’s like ‘If you cap your downside, the upside takes care of itself’… if you take enough shots and you’ve constantly capped your downside, if you have a couple of outliers that give you disproportionate upside–in the long run, you’re going to average out ahead and beat most people.”

Indeed. Trend following.

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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 One of the Omaha Guys Lays It Out with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

In this episode of Trend Following Radio:

• Knowing the edge of your own competency
• Humility
• Integrating disciplines
• Occam’s razor
• Academia in America
• Diversification
• Capitalism

Mentions & Resources:

• Charlie Munger

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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:

Hello Michael,

I am sure you have seen this article today in the FT, if not here it is.

I have all your books, and I am a regular listener to your podcasts, which I enjoy. My trading style is based purely on psychology and trend following, with manged risk. I would not trade any other way! Averaged 35% return over the last four years. Love it when you get Tom Basso, Richard Dennis and others on your podcast. Why make trading complicated…!

I think as human beings we can’t in today’s world, think simple is best. I have proved to myself, and to my bank account it is, and I use your books and listening to your podcasts to keep me on the straight and narrow. As sometimes you think you know best, and you completely F**K it up.

Great content, thank you for sharing.

An appreciative Trend Follower, who is very much Long on Covel Futures…!

Best regards,
[Name]

Welcome!

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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.

Food for thought:

• Jeff Bezos’s Morning Routine Is the Opposite of Most Productivity Advice. Maybe Yours Should Be Too
• Where Do Our Greatest Trading Mistakes Come From?
• The George Costanza Portfolio
• Per capita lottery spending has doubled since 1995
• The 10 Most Important Technology Storylines From The 2017 NBA Season
• MIB Defending Against the Onslaught of Amazon
• Developers Look to Hit Tax-Break ‘Jackpot’ in Opportunity Zones
• Smarter, Not Harder: How to Succeed at Work
• Women Managers Have Little Margin for Error
• A Change in Perspective
• Small Is Better and So Is Passive in Money Management
• Please Allow Me to Introduce Myself
• Lottery math is human math
• Short Investing Rules
• Investor behavior: from priorities to expectations
• Every “Unified Republican Government” Ever Has Led to a Financial Crash
• Just because you don’t understand it
• Cash holders need a new drug
• We Only See a Version of the Truth
• The 5 Kinds of Bounces
• Markets aren’t struggling because investors fear Democrats
• The Psychology of Sitting in Cash, Part Deux
• You Have No Competition
• ETFs’ Hidden Source of Return—Securities Lending

Enjoy.

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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 Deliberate Practice with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

In this episode of Trend Following Radio:

• Deliberate practice.

Mentions & Resources:

• Anders Ericsson

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.

Subscribe to Trend Following Radio on iTunes

Please enjoy my monologue Blast from the Past with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

In this episode of Trend Following Radio:

• Thinking Right

Mentions & Resources:

• Walter Williams

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,

Nothing has really changed for me after reading your emails. I basically agree completely with your philosophy.

The cost of your course/online material is not an issue either.

My hesitation is the lack of time that I have to learn your system and actively trade at this time.

I plan to be a more active investor at some point in my life, but am not sure I have the time to invest in the process at this time. I do not want to commit a couple thousand dollars toward an educational process and not be able to give it a reasonable effort.

I practice Emergency Medicine and work the night shift, so I sleep all day and usually am not awake until the markets are closed for the day. I have been slowly reducing my workload and am now only working 160 shifts/year, so I do have several stretches of 3 and 4 weeks off at a time. These are sporadic through the year. My wife and I often are traveling during those times. I’m 65 years old, healthy, and still working full time. 4.5M liquid investment capital divided between accounts at TD Ameritrade, Vanguard, USBank, and the Principle (work 401/457 plans).

How much time would I need to invest to fully understand your program and begin to apply it?

Thanks,
[Name]

Good questions. Pulled from my FAQs here:

Q: How much time is required to trade as a trend following trader?
A: You can spend a minute or two per market each day. For example, you check prices in the evening, then with one trade in the morning, you place or change any orders in accordance with rules. Flagship trend following trading systems use daily data to determine buy and sell signals. Orders can be placed before the market opens and do not need hourly monitoring. Most top traders manage their trades in 10 to 30 minutes per day. Trend follower Richard Donchian:

“If you trade on a definite trend-following loss limiting-method, you can trade without taking a great deal of time from your regular business day. Since action is taken only when certain evidence is registered, you can spend a minute or two per [market] in the evening checking up on whether action-taking evidence is apparent, and then in one telephone call in the morning place or change any orders in accord with what is indicated. [Furthermore] a definite method, which at all times includes precise criteria for closing out one’s losing trades promptly, avoids…emotionally unnerving indecision.”

Each day you determine entries and or exits for the following day. You can then buy or sell “at the market” on the open the next day.

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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.