My guest today is Nick Radge. Radge operates The Chartist (www.thechartist.com.au). He began trading in 1985. During a stint working for an investment bank in Singapore Nick dedicated his evenings testing trading strategies; 2 hours a day for 18 months, a total of at least 750 hours. Nick’s first book, Every-Day Traders (John Wiley & Sons Australia Ltd, 2003), was written to identify the traits of successful traders.
The topic is his book Unholy Grails – A New Road to Wealth.
In this episode of Trend Following Radio we discuss:
- How the trend following world is foreign to many people
- The importance of drawing distinctions between traditional value investing and alternative systems like trend following
- How the name of the game for many fund managers is not necessarily performance but funds under management
- Playing the game of mathematics vs. playing the game of picking the right stocks
- Why the US stock market has gone straight up despite all the fear going on elsewhere in the world, and why you shouldn’t “fight the tape”
- Closet trend followers
- Why price can’t be faked
- Trade restrictions, cultural attitudes, and the importance of being able to step out of the crowd
- Why individuals have an advantage over fund managers
- The value of understanding trend following even when you don’t actually use it as a strategy
- Spotting ‘trends’, how you can’t spot a trend until it’s started or until it’s over, and using hitchhiking as an analogy for trading
- How trend following is useful when outlier events and black swans appear
- Using rules and strategies to fight fear
- The difficulty of using Warren Buffett as an example, and the problems that arise when managing larger amounts of money
- Radge’s thoughts on being an entrepreneur
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