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Peter Borish: Prenuptial Agreement with the Market

Posted on by Michael Covel

At the panel I moderated today in Paris Peter Borish put the concept of a stop loss into terms everyone can grasp. He called it a “prenuptial” with the market.

You have to know your downside, his simple but crucial point.

More on Peter can be found on my podcast and in my film.

Peter Borish
Peter Borish

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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.

Jesse Livermore: Trend Following Legend and Reminiscences of a Stock Operator

Posted on by Michael Covel

Jesse Livermore Books:

• How to Trade in Stocks (PDF)
• Reminiscences of a Stock Operator (PDF)

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.

Richard Dennis on Computers: It’s About Real English

Posted on by Michael Covel

An excerpt of an interview with Art Collins and Richard Dennis follows. First the question from Collins and then the answer from Dennis:

Q. How hands on are you behind the programmers? Are you standing behind them explaining exactly what you want optimized, etc?

A. I spend most of my time talking to programmers and waiting for results. I’ve been working with most of these people for 20 years so I’m able to get into that intermediate zone between computer-ese and real English. I call them up and say here’s the idea in English. Here’s my idea of how it would go in the program, but you’re the guys who are going to have to decide that ultimately. It’s actually quite an adventure because a good programmer will get the first iteration wrong half the time.

More.

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.

La Mere Vipere and the Turtles

Posted on by Michael Covel

La Mere Vipere, often called the world’s first punk dance club, opened in Chicago in 1977. It subsequently burned down in 1978. At that bar not yet a Turtle Lucy Wyatt met Richard Dennis’ brother Tom Dennis (also a trader). There is a very good chance the Turtle experiment would never have happened if not for that random chance encounter between Lucy Wyatt and Tom Dennis (more on that to come). And that chance encounter surely included the Sex Pistols’ Johnny Rotten belting out at least once that night “God Save the Queen“.

Another Turtle Interview

Posted on by Michael Covel

I had the opportunity to spend four hours tonight with Turtle Lucy Wyatt Mattinen in Reston, Virginia. While we did not speak for the hard cover edition of my book, Wyatt Mattinen’s interview added great detail for a new Afterword that will appear in the 2009 paperback edition.

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.

Wisdom from 1974: Donchian Student

Posted on by Michael Covel

Barbara Dixon, a student of master trend follower Richard Donchian, writes in 1974:

Technical Analysis is based on market action, or price. The theory derives from basic economics. The price of a commodity at a given time is determined by the supply, the demand, the general economic outlook, the weather, the political climate, the optimism or pessimism of the population, and other factors. The technician looks only at the price, since by itself it represents one side of the equation and thus encompasses all the other inputs. The technician mentally substitutes the words “buy” for demand and “sell” for supply. Thus, when corn increases in price, the technician says that buying – demand – is increasing and that the price is going up. The trend follower makes no attempt to forecast the extent of a price move. His basic tenet is that once a trend begins, it has a tendency to persist in the same direction for some time. He devises precise rules to determine what, to his mind, constitutes a trend and identifies the situation when a trend has finished or reversed. He then further disciplines his thoughts into a strict set of conditions for entering and exiting the market. He acts on these rules (his “system”) to the exclusion of all other market factors. In so doing, a trend follower removes, hopefully, emotional judgmental influences from his individual market decisions.

Not exactly dated wisdom!