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Dear Mr. Covel,

I am attempting to trade the forex market. I know of no other market where someone can make or lose so much so quickly. To get to the point, I’m looking at the GBP/JPY. If you look at a chart, I’m obviously late to the party. I know about entering a market when it has reached a 55 day high, but I missed that a long time ago. However, it seems to have risen past resistance. So I’m trying to enter midstream you might say. Any advice? Thanks for your time. I just subscribed to your newsletter. Thanks again.

Nathan L.

That’s an incomplete way to see trend following. You need:

Portfolio: What market do you buy or sell?
Bet Sizing: How much of a market do you trade?
Entry: When do you buy or sell a market?
Exit: When do you exit a losing trade?
Exit: When do you exit a winning trade?

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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.

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Michael,

My biggest challenge in trading is being able to find the time while still working full-time at my “real job” to be laser focused on knowing and applying what I do think I know about trading to achieve consistent successful results.

All The Best,
David H.

Trend following is end of day or end of week bar. No day trading.

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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.

Feedback in:

Hey Michael, how are you doing?

My name is [name]. I am from Medellin, Colombia.

I’ve been working 22 years in the banking sector, in the early days as a stockbroker and currency broker and the last 10 year as a proprietary position FX trader in BTG Pactual (Colombia Branch), and I consider I was a good trader, with good results and experience in risk management and mindset.

In February 2023, I made the decision to quit the company and have some sabbatical months, but I’ve been trying trading by myself and the biggest challenge for me has been to set my mind to trade with my own money. It has been very difficult with no good outcome at all.

So, the answer for your question is to get the proper mindset with your money. This is a lonely business.

Thanks!

Diego B.

Do you want to be a trend follower, Diego? Start here.

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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.

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Michael,

My father and I developed an edge—nothing really special [strategy]. It is a day trading strategy based on VWAP with different timeframes crossing as the indicator to get in (either long or short). We have been down the path of Elliot wave among other theories.

The problem I have is staying in on a trending move. I clear out way too early on winning trades. I get too itchy and take my money. We actually call it “give me my money strategy”. When we back test the strategy (I use Think or Swim), it will deliver anywhere between $3K and $5K a day in profit following the process (high beta; mega cap—usually in tech) yet I walk away with $500 or less.

I’ve boiled down my challenge to fear, something like the “fog of war” mentality. I’ve been trying to work on the psychology of trading but that damn amygdala gets in the way.

I just purchased the Trend Following and started to read it. I’ve listened to your podcast for the last several months. I enjoy the straightforward discussions.

Anyway, that’s my biggest challenge in trading!

Peace,
Scott

Nice, but bad news. A trend following path is far superior.

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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.

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Mike,

First off, thank you for all the time and effort you put into the work you do. Love your books and your podcast, as they are very informative. I have a question, how do trend traders in the futures market maneuver gaps after settlement? Are they closing positions at end of day and reopening or do they let it ride? I trade crude oil and have seen some pretty nasty gaps at times. Although be it rare, they could lead to a sizable loss. Thanks again.

Trend followers are not one market traders.

They have exits based on price.

They have risk management based on price.

Gaps are built into price.

Right?

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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.

Feedback in:

Michael, On May 2, 1988 a call took place in one of the Drexel Burnham Lambert conference rooms in Mike Miken’s Beverly Hills offices. Rich Dennis’ first (and I believe only) public futures fund had experienced significant losses and the call was a Q and A to see if the fund was going to remain open. I was in the room and recorded the call on my trusty Philips microcassette recorder. In one of your recent podcasts you mentioned listening to old tapes of some of the legends, and knowing of your deep involvement with the Turtles, I thought you might enjoy it. I got it into .mp3 format – it is about 40 minutes long ad about 40mb. If you’d like it, please reply and I’ll send you a Dropbox link so you can download it. I haven’t cleaned up the audio, but it is listenable. During most of the 80’s I was employed in Drexel Burnham’s Beverly Hills office… In the early days of managed futures that led to meetings with Richard Sandor and Richard Dennis and the establishment of the Dennis Preferred Futures Fund… I knew most of the characters involved in the fund and learned more in a couple of years than in decades forward. Now I’m one of the old guys (well, not that old!) you sometime reference – I still manage some money for a few long-time clients, largely to keep my brain active and because I enjoy the interaction and trading without the stresses of my earlier life.

I’ve enjoyed your podcasts for many years – they’ve been beneficial since I’ve been able to listen to many amazing minds, hear your insightful questions and even reach out to some of your subjects.

I have absolutely no agenda, and hope you’ll find something of value in the Dennis tape. Thanks for the work you do!

Regards,
[name].

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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.