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Ed Seykota Trend Following Wisdom

Posted on by Michael Covel

Some perspective from Ed Seykota taken from “Trend Following”:

The following story passed along from an associate is “pure Seykota”:

“I attended a day-long seminar in February 1995 in Toronto, Canada where Seykota was one of the guest speakers. The WHOLE audience peppered Seykota with questions like: Do you like gold, where do you think the Canadian $ is headed, how do you know when there is a top, how do you know when the trend is up etc.? To each of these, he replied: ‘I like gold—it’s shiny, pretty—makes nice jewelry’ or ‘I have no idea where the Canadian dollar is headed or the trend is up when price is moving up, etc.’ His replies were simple, straight-forward answers to the questions asked of him. Later, I learned through the event organizer that a large majority of the audience (who paid good money, presumably to learn the ‘secrets’ of trading from a market wizard) were not impressed. Many felt they had wasted their time and money listening to Seykota. Seykota’s message couldn’t be clearer to anyone who cared to listen. The answers were found in the very questions each person asked. Don’t ask, ‘How do you know the trend is moving up?’ Instead, ask, ‘What is going to tell me the trend is up?’ Not, ‘What do you think of gold?’ Instead, ask, ‘Am I correctly trading gold?’ Seykota’s answers effectively placed everyone in front of a huge mirror, reflecting their trading self back at them. If you don’t even know the question to ask about trading, much less the answers, get out of the business and spend your life doing something you enjoy.”

How would you have reacted to Seykota’s speech? Walk out or be curious? Think about it.

Feedback in:

I wanted to reach out and thank you for the books you have written. I will admit I’ve read them all from obtaining them through the library system, but I now believe I will buy them as resources to reference. The “Trend Following” philosophy clicked immediately with me and listening to your podcast has really enlightened my mind considering I’ve been typically listening to Motley Fool for my job as a Financial Analyst. In a short period of time I feel I can see through the garbage that is filling those podcasts. I still listen to keep up with my CFO, but feel as if I’m a lone wolf at work with a strategy that none of them could ever understand. Within weeks of reading on Ed Seykota I have already programmed an entire Google Doc to automate my buy/sell/risk/data pull just by typing a ticker for what I want to trade. Kudos to you for following this path and providing the knowledge to us for consumption. I hope to continue to follow your path as you continue. If you are ever in Colorado feel free to check-in with me and see whether I’ve hit life changing levels yet.

Thanks again,
[Name]

Thanks!

Ed Seykota Larry Hite

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.

Ep. 449: Neil Pasricha Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Neil Pasricha
Neil Pasricha

Subscribe to Trend Following Radio on iTunes

My guest today is Neil Pasricha, an author, entrepreneur, podcaster, and public speaker characterized by his advocacy of positivity and simple pleasures. He is also an established speaker and his TEDx talk, “The 3 A’s of Awesome”, is ranked as the ninth most inspiring TEDx talk with over 3 million views to date. In total, he has sold over 1 million books. The book and TED talk are based on Pasricha’s blog, 1000 Awesome Things. The blog has won three Webby Awards and ranked in PC Magazines list of top blogs and websites in 2009 and 2010.

The topic is his book The Happiness Equation: Want Nothing + Do Anything = Have Everything.

In this episode of Trend Following Radio:

  • Happiness
  • Retirement is a lie
  • Loving your work
  • The lottery
  • The note card system
  • Criticism
  • Goals are never ending
  • Having less wants in life

“The action proceeds the motivation.” – Neil Pasricha

“Wealth exists not in having great possessions but in having few wants.” – Epictetus

Mentions & Resources:

Listen to this episode:

Jump in!

Expensive Lessons, But Wiser for the Experience

Posted on by Michael Covel

Feedback in:

Hi Michael,

Almost finished your “Trend Following” and noticed there are…[some] people having negative issues with trend following. Well, I can tell them something…

In 2006 I started with 20,000 USD, no trading training and I [took training]. The key here is that I had no trading education. In Oct 2008 I made 300,000 USD and after 7 years of trend following I turned the initial 20,000 into almost 800,000. I then thought I know how to trade and started day trading and then (as many traders before me) lost everything. I [then] came to the conclusion that I knew nothing about trading… expensive lesson for me, but I knew what was possible [with trend following].

I have for the past year gone through an extensive training process [books and a course with (name)]. I still get the [name] data every day and will soon start again. Obviously I know a lot more than before, but the important thing is that I could turn 20,000 into almost 800,000 (drawdowns, etc. included) and I made money on ONLY 35% of my trades, that is without ANY formal trading knowledge, just following the trend.

So, no one [will] tell me trend following does not work, is dead, or anything else. It is alive and well and will be forever.

Just a private experience I would like to share.

Kind regards,
[Name]

Thanks!

Up and Down
Up and Down

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.

If You Wanted to Know Nothing About “Bubbles” …Watch this UBS Investor Forum

Posted on by Michael Covel

Everything wrong about market advice for your edification.

$3000 suits, aristocrat accents, too much school = 100% bullshit
$3000 suits, aristocrat accents, too much school = 100% bullshit

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.

Human Behavior Pros on Michael Covel Podcast

Posted on by Michael Covel
Great Behavioral Minds
Great Behavioral Minds

Here is an easy way to dig into so many of the psychology pros that have appeared on my podcast.

It will only take you around 30 hours to listen to all.

What else are you going to do? Watch that Kardashian show?

This is 30 hours of podcast episodes that will change your life.

Dig in.

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.

Ep. 448: Mike Lofgren Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Mike Lofgren
Mike Lofgren

Subscribe to Trend Following Radio on iTunes

My guest today is Mike Lofgren, an author and a former Republican U.S. Congressional aide. He retired in May 2011 after 28 years as a Congressional staff member. His writings, critical of politics in the United States, particularly the Republican Party, were published after his retirement and garnered widespread attention.

The topic is his book The Deep State: The Fall of the Constitution and the Rise of a Shadow Government.

In this episode of Trend Following Radio:

  • The deep state phenomenon
  • Military industrial complex
  • National debt
  • Negative interest rates
  • Does your vote matter?

“If we were ever able to get the money out of politics, that would be the precursor, that’s the precondition for any other reform.” – Mike Lofgren

Mentions & Resources:

Listen to this episode:

Jump in!

“Make Art, Life is Short…”

Posted on by Michael Covel
Make Art
Make Art

Feedback in:

Michael,

I just wanted to give you my feedback. I truly love the content of the podcast, it has strengthened my trading skills and allowed me research profitable trading strategies.

I have read all your books and I am a big fan of your work. Something you said in one of your recent podcasts was “make art, because life is short” and this really resonated with me. I want to build something special and I that is my current focus. How can I make a bigger impact on the world.

Anyway, my feedback is that while the content is great sometimes the interviewees are difficult to hear. I’m not sure if it is because you are using a Skype recorder or if you have another tool. Other podcasts are more crisp and easy to listen too.

I don’t know if a mixer would help but I wanted to at least let you know my thoughts. I appreciate your work and I’m not trying to be critical just providing feedback.

Hope all is well.
[Name]

Thanks!

My voice is easy to control. We keep that audio consistent. Unfortunately, guests can be problematic due to their microphone and or Skype connection.

Unfortunately, people are not clued in to worry about sound yet.

Do I turn away interviews with Nobel Prize winners cause of not perfect sound?

Not yet!

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.