“Let my profits run, follow the trend…”

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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.



Ep. 665: Cyrus Farivar Interview with Michael Covel on Trend Following Radio

Cyrus Farivar
Cyrus Farivar

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Cyrus Farivar is 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.

Do we really know the extent to which we are being watched? Probably not. Surveillance technology affects us all – for better or worse. For example, nearly half of Americans are in facial recognition data bases. In addition, most Americans have a drivers license, identification card, or passport – putting just about every adult into a government system.

Does this mean privacy is dead? Not necessarily. Some things will continue to be private. Cyrus lays out some companies that build their whole business model around keeping the information of their clients secure from any outsiders – whether it be a private citizen or the government.

Having heightened security and better technology has it’s advantages and disadvantages. Obvious disadvantage? Loss of privacy. What is one advantage? Law enforcement can not only use surveillance to catch bad guys, but it can also be used to keep themselves in check. Just about every person has a phone with great video technology. Everything is recorded and everything can be seen. Michael and Cyrus end the conversation discussing the controversy around aerial surveillance and private use of drones

In this episode of Trend Following Radio:

  • 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

Mentions & Resources:

Ep. 663: Elon Musk, NBC and Scott Adams Navigate Mental Prisons

Mental Prisons
Mental Prisons

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All fundamental data, insights, and prediction, reduces to price. Price is the foundation for all trading. Michael caught a reminder of this in a recent twitter debate with Elon Musk. A NBC reporter challenged Musk on his insights and wanted him to come by the news room to have an interview and see his “process”. Michael reads the debate between the reporter, Musk and Scott Adams (creator of the Dilbert comic strip). Michael weaves his commentary and insights throughout.

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

Mentions & Resources:

“Bullet proof both physically and financially given the heft of the books…”

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I saw this opinion piece and thought you might enjoy it: Intellectual Dark Web.

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.

Have a great day!


Fun Picture Serious Subject
Fun Picture Serious Subject

“It has also been interesting to witness your own life journey and growth…”

Up Down Up Down
Up Down Up Down

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Hi Michael:

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.

Martin T.

Thanks for the nice email!

A good link for you? Here.

On entries? Preference are price breakouts v. moving averages.

No Australia yet!

Ep. 662: Daniel Klein Interview with Michael Covel on Trend Following Radio

Daniel Klein
Daniel Klein

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Daniel Klein is a professor of economics at George Mason University and an Associate Fellow of the Swedish Ratio Institute. Much of his research examines public policy questions, libertarian political philosophy, and the sociology of academia. He is the chief editor of Econ Journal Watch.

When did Daniel first embrace the idea “liberty”? He was dissatisfied with the school system for most of his childhood. A friend asked him “Have you ever thought about why school sucks?” His friend explained that students don’t get to choose where they go to school, there is no private ownership, schools don’t have choice in curriculum etc. He quickly saw the system as a socialist operation and suddenly “Why school sucked” all made sense to him. This gave way to him falling into a free economic market, libertarian, and Austrian Economics way of thinking.

Into college he gradually discovered Adam Smith, David Hume, and other 18th century thinkers. Through research he saw that the word “liberal” was not used in a political sense until about the time of Adam Smith. People had thought of ideas associated with liberalism but when Smith came out with “The Wealth of Nations,” he finally put a name to this way of thinking. Regardless of whether people agreed with his politics or not, his ideas spread throughout the world.

To really understand the arc of liberalism throughout the years it is important to learn what happened in the past and see the progression. Today, terms such as “The left”, “Dem”, and “Progressive” are all terms that have been adopted by others to accept liberalism.

In this episode of Trend Following Radio:

  • Liberal thought
  • Dirty politics
  • Evolution of liberalism
  • Left pole and the non-left coalition
  • U.S. political debate
  • 18th century liberalism

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