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The Power of Habit Investments

Posted on by Michael Covel

From zenhabits:

How to Create Habit Investments: It’s a fairly simple process that you can repeat with various types of habit investments:

• Pick something desirable. If you repeatedly do this activity, what will it grow into? Is that what you want?
• Do just a minute or two of it. You can’t build it all up in the next few days. That’s a good recipe for failure. Just do 1-2 minutes of it today. Smile as you do it.
• Set a daily reminder. Let’s say you want to do it every day at about 6:30 a.m. Set a reminder for that time, and make it a priority to do it each day, just for a minute or two.
• Watch it grow. If you just do it repeatedly, it will grow. Don’t force it. Keep the repeated activity as small as possible for as long as you can if you want it to grow (it sounds paradoxical, but it works).

Perfect thinking for a new trend follower.

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.

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“You certainly know how to connect the dots and express them with clarity and passion.”

Posted on by Michael Covel

Feedback in:

Michael, In one of your recent podcasts you pointed out Japanese investors and their risk aversion vs. their market’s performance over the past decades. When you next made the accusation that the same thing was happening among Americans you nailed it! It is exactly what is happening here, and, as you pointed out, it goes far beyond just investing in markets. You certainly know how to connect the dots and express them with clarity and passion. I only discovered your podcast a couple months ago but must say that I enjoy your insights and perspective while, alternately, so many other podcasts are so narrowly focused on what the S&P 500 will do in the next day-week-whatever. I find your thinking about how we engage the world around us similar to my own philosophy and will continue to listen and enjoy. Thank you for sharing. Regards,
Steven R.
Deerfield, IL USA

Thanks Steven. Appreciate the kind words.

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. 101: A Love Affair with Apple with Michael Covel on Trend Following Radio

Posted on by Michael Covel
A Love Affair with Apple with Michael Covel on Trend Following Radio
A Love Affair with Apple with Michael Covel on Trend Following Radio

Please enjoy my monologue A Love Affair With Apple with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

Listen to this episode:

Want to learn more Trend Following? Watch my video here.

Thanks Again for Your Wonderful Wake-up Calls

Posted on by Michael Covel

Feedback in:

Hi Michael, I have started to read your books about 6-9 months ago, and bought the only one I was still missing last week-end! I still have to complete reading of this last one, currently ‘digesting’ the various readings, while I have to fully grasp all the learning into a structured thinking of mine. Over the past 6 months I have also started to seriously listen to your podcasts and trying to catch-up with the long list of great insights. I like your personal way of thinking/speaking: incisive, clear-cut, no unnecessary compromise. Your message goes out loud and clear. Thanks for this fantastic array of shared knowledge! You have clearly influenced (directed?) my belief in price and trend following as the methodology that all successful traders use. I am now a firm believer of ‘taking charge’ and I believe ‘Trend Following’ is the way. I am still struggling a bit to put a system in place. I want to purchase one of your systems, but I am not sure which one. My sons are more knowledgeable in dinosaurs than I am, but not your types of dinosaurs! This morning, I was catching a bit on podcasts and heard you will be in Singapore later in February. I would love to meet you face-to-face. Based on your insights, I would also like to understand why in your opinion, despite using the same system described in your books, the ‘turtles’ did not all have the same amount of success: different leverage? less discipline to follow the trading signals? Do you short the exact same way as you ‘long’ the market?, etc. I am really looking forward to meeting with you in Singapore,
Very best regards,
Patrick

P.S. Two words on me: I am a French national, living in Asia with my family for 8+ years by personal choice. I successfully started a joint-venture in India 8 years ago (but unfortunately did not get shares of it… ), then have been the MD of [name] in Malaysia for 2 years, and have now been developing business in Asia for [name], based here in Singapore. My personal story with the finance industry is not different than the one of many others when it comes to ‘investing/trading’. I initially thought that, as for other Industries, trusting the professional investors was the safe bet, to my greatest disappointment. Trust in banks and pensions funds has eroded with the bad years to the point where I went into reading/listening to make my own decisions. Which is where I am now…Thanks again for your wonderful ‘wake-up calls”!

Thanks! We will try for a Singapore meetup once my schedule firms.

How and why did Turtles have differing levels of success? That is a main component of my book on their story. Take a read!

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.

“Become the Conduit of Ecstatic Truth”

Posted on by Michael Covel

From Gaping Void:

I am the conduit of ecstatic trend following truth: listen.

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.

Why Is the EMF Theory So Widely Advocated?

Posted on by Michael Covel

Consider (source) an excerpt:

Why is the EMF theory so widely advocated? Academics love EMH because they can claim that they have mathematics-based formulas which can predict the future even though the underlying assumptions (borrowed from physics) are provably false. For a professor, the ability to create beautiful mathematics is important since it means that they are less likely to be teased by physicists in the faculty club. Life is infinitely more interesting for an academic if they can create beautiful mathematics in their papers.

Charlie Munger adds:

“I have a name for people who went to the extreme efficient market theory—which is “bonkers.” It was an intellectually consistent theory that enabled them to do pretty mathematics. So I understand its seductiveness to people with large mathematical gifts. It just had a difficulty in that the fundamental assumption did not tie properly to reality.”

More Munger:

“The possibility that stock value in aggregate can become irrationally high is contrary to the hard-form “efficient market” theory that many of you once learned as gospel from your mistaken professors of yore. Your mistaken professors were too much influenced by “rational man” models of human behavior from economics and too little by “foolish man” models from psychology and real-world experience.”

More Munger:

“Efficient market theory [is] a wonderful economic doctrine that had a long vogue in spite of the experience of Berkshire Hathaway. In fact one of the economists who won — he shared a Nobel Prize — and as he looked at Berkshire Hathaway year after year, which people would throw in his face as saying maybe the market isn’t quite as efficient as you think, he said, “Well, it’s a two-sigma event.” And then he said we were a three-sigma event. And then he said we were a four-sigma event. And he finally got up to six sigmas — better to add a sigma than change a theory, just because the evidence comes in differently. [Laughter] And, of course, when this share of a Nobel Prize went into money management himself, he sank like a stone.”

I will add more to this on today’s podcast (will be episode 51).

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.

How I Look At The Markets

Posted on by Michael Covel

The markets are a science. Plain and simple. Some like to look at fundamentals and guess what will happen next. I like to look at the numbers. The facts. The only thing you can trust. Billion dollar hedge fund manager David Harding views the markets similarly:

Our approach to markets is a science. It is an unpublished science, but it is a real one. You would have thick leather-bound volumes of papers on it if there were a willingness to “open the kimono,” as the horrible modern expression has it. The process of trading our system is like repeatedly drawing different colored balls from the statistician’s apocryphal bag. As we draw out a ball it becomes part of the track record, and we put it back in the bag, but there is no guarantee that the balls will come out in the same order in the future.

Trend following is speculation in its purest form–find an edge and exploit it consistently over time. That attitude is critical for any entrepreneurial success. Throw the lottery mentality away. Forget the one hit wonder luck the press propagates to the masses of lemmings. Learn the real way to profit that goes against buy and hold (hope).

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.