My guest today is Aaron Brown, a finance practitioner, expert on risk management and gambling, speaks frequently at professional and academic conferences and author of “Red-Blooded Risk,” “The Poker Face of Wall Street,” and co-author of “A World of Chance.” He was Chief Risk Manager at AQR Capital Management and one of the original developers of value at risk. At 8 or 9 years old Aaron would read the newspaper everyday just to see the sports and Wall Street numbers. Over time, he started to see patterns in those numbers and felt he might be able to make money off it. He came across a book at his library that mathematically proved he could “beat the house.” At age 14 Aaron knew he could walk into a poker game and walk out with his opponents money. He gambled into his early 20’s until he realized the real money to be made was on Wall Street.
The topic is risk management and gambling.
In this episode of Trend Following Radio we discuss:
To adopt the mindset of an entrepreneurial trader we need to think less about buying and selling and more about entering and exiting. As an entrepreneurial investor you need to be OK with losing small money. It can’t bother you. You need to think strategically about your trades and let SOPs and data drive your decisions – not your gut.
Removing the emotional part of investing and let the stock do its thing. Place my stop and use it and do not let my emotions allow me to make up a loss which most likely will become a bigger loss. Let my profits run, follow the trend.
My guest today is Cyrus Farivar, a Senior Tech Policy Reporter at Ars Technica, radio producer and author of “Habeas Data: Privacy vs. the Rise of Surveillance Tech.” Cyrus sees the privacy battle as an ever winding, never-ending road. Privacy is hard, national security is hard, law enforcement is hard but Cyrus is optimistic we can strike a good balance between all three.
The topic is his book Habeas Data: Privacy vs. the Rise of Surveillance Tech.
In this episode of Trend Following Radio we discuss:
Privacy by design
Facial recognition
Capturing phone meta data
Unreasonable search and seizure
Apple’s security technology
Radical transparency vs. total privacy
NSA
Edward Snowden
Google Maps
“The privacy rabbit hole never ends. It gets ever ever deeper.” – Cyrus Farivar
Please enjoy my monologue I Like How @Naval Thinks 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!)
Please enjoy my monologue Elon Musk, NBC and Scott Adams Navigate Mental Prisons 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:
Price action
Mental prisons
Reducing the information flow
Entrepreneurship
“Are you in a life function that can be measured or are you just taking a paycheck?” – Michael Covel
By the way, I purchased your 5th edition of Tread Following in hardback along with Tim Larkin’s book. I haven’t dug into them yet, which would be a second reading of your book, but I figure with them a person is almost bullet proof both physically and financially given the heft of the books and what is in them.
I’ve been immersing myself in your podcast over the last few months. I’m not sure if it was the best decision to start at the beginning but I am about half way through 2013 at the moment. You are currently still in Asia. I spent three months there myself just traveling around. Not only has it been fascinating listing to your podcast regards trend following but it has also been interesting to witness your own life journey and growth, (eg yoga, travel etc) all compacted down into a few months. I’m looking forward to the rest and catching up to modern day. And I have also enjoyed reading some but not yet all of your books.
So I won’t go into detail as to why I think trend following is very much suited to me but listening to your podcast daily has given me the confidence to take full responsibility over all my trading decisions. I had already accepted full responsibility as to the outcome of my investment. Eg if I ask and receive financial advice, whatever the outcome, it is still my responsibility. But along with that came many frustrations which you completely address and have now given me the vehicle (trend following) to actual choose the trades I make.
Fortunately I am an oracle database programmer and so am a long way into generating my own fully automated system which will simply pump out my daily actions. And fortunately I have the personality to simply follow them because that’s easier than having to make a discretionary decision.
So firstly I simply wanted to thank you for your great work and secondly ask a simple technical question which maybe you won’t answer but that’s OK.
When charting most professional suggest that a Exponential MA is superior to a Simple MA for a number of reasons but when people talk about systematizing there trading on your podcast they always refer to a Simple MA and I am wondering from a trading perspective does it not really make any difference or is it simply that a Simple MA is easier to code?
Anyway things may have change across the 5 years that I am behind on your podcast and perhaps you no long take email, But I’m glad I have contacted you. You have had a profound affect on my life. I really enjoy the psychology and self improvement aspect of your podcast and the constant message of taking full responsibility and not looking to the ‘Man’ to look after me.
By the way I am in Australia, not sure if you have made it down this way yet.
