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Category: Podcasts

Ep. 90: Richard Weissman with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Richard Weissman
Richard Weissman

My guest today is Richard Weissman, a professional trader with over 25 years of experience and an author. Weissman considers himself a “swing trader”. He is one of the world’s foremost authorities and thought leaders in the fields of derivatives, risk management and technical analysis.

The topic is his book Trade Like a Casino: Find Your Edge, Manage Risk, and Win Like the House.

In this episode of Trend Following Radio we discuss:

  • Weissman’s path from how he started trading with his father in 1987 to how he made his way to where he is today
  • Background to Weissman naming his book
  • The influence of Jack Schwager’s work
  • Risk management
  • Positive expectancy
  • How Weissman defines trends and signs of strength
  • The idea of “don’t anticipate, just participate”
  • Positive expectancy and the probability skew
  • The connection between table limits and risk management
  • How there are no truly “safe investments”
  • Some tools that Weissman has used to influence his own trading psychology and smooth out the emotional highs and lows
  • Not letting a high price stop you from buying, and not letting a low price stop you from selling
  • Weissman’s concept of “the opaque urn”
  • The three things you can guarantee

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Ep. 89: Tadas Viskanta Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Tadas Viskanta
Tadas Viskanta

My guest today is Tadas Viskanta, the founder and editor of the Abnormal Returns blog and a private investor with 20-plus years of experience. Viskanta calls his blog a “forecast free investment blog”.

The topic is his book Abnormal Returns: Winning Strategies from the Frontlines of the Investment Blogosphere.

In this episode of Trend Following Radio we discuss:

  • Investment philosophies and strategies to the challenges authors and bloggers face in the world today
  • Disadvantage given to those who follow the constant data stream from the media
  • Why Viskanta felt the need to write “Abnormal Returns”, and the strategy and style behind it
  • The phrase “abnormal returns” and trying to measure returns over and above the risk taken
  • Underperforming
  • Preparing for abrupt change in the markets
  • Viskanta’s move from value investing to a more systematic strategy–and Covel’s early experiences with value investing material
  • Now that so many global barriers are easy to cross, why so many people have “home bias” and difficulty placing global investments
  • Why people still look at the markets with rose colored lenses and so easily forget the bubbles of the past
  • The behavior gap
  • Why having a suboptimal strategy that you can follow in a systematic way is better than having no strategy at all
  • The ramifications of instant feedback in the blogosphere
  • Why you need a burning desire to be an author today

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Ep. 85: Barry Ritholtz Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Barry Ritholtz
Barry Ritholtz

My guest today is Barry Ritholtz, an author, newspaper columnist, blogger, equities analyst, television commentator, and CEO of Fusion IQ. Ritholtz is deep down a quant guy, but brings strong views and opinions. However, he won’t sit around and “fight the tape”.

The topic is his book Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy.

In this episode of Trend Following Radio we discuss:

  • The price of paying attention and why you should be selective in what you watch, read, and listen to
  • The onslaught of political information
  • The insatiable need to consume information and knowing when it’s the right time to quarantine yourself from being influenced by someone in particular
  • Ritholtz’s views on gold, why attaching your emotional well-being to it is wrong, and how it won’t be quite as valuable as most people think in the event of a crisis; cutting your losses short and letting your winners run
  • The real value of intuition
  • How Ritholtz views the world and where we’re at right now, societal and economic cycles, and how you can’t be a doom and gloomer seeing what’s coming down the pipeline in the next generation
  • The importance of not being cash rich and time poor, getting “lost in the screens”, and leading a good life instead of always chasing money for its own sake.

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Ep. 84: The Search for the New New Thing with Michael Covel on Trend Following Radio

Posted on by Michael Covel
The Search for the New New Thing with Michael Covel on Trend Following Radio
The Search for the New New Thing with Michael Covel on Trend Following Radio

Please enjoy my monologue The Incessant Search For The New New Thing with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

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

Ep. 83: Tom Basso Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Tom Basso
Tom Basso

My guest today is Tom Basso, the trend following trader famously featured in Jack Schwager’s “New Market Wizards”. Basso is a hedge fund manager. He was president and founder of Trendstat Capital Management. Trendstat was closed in 2003 when assets under management fell to $65M. He is the author of two books, Panic-Proof Investing and the self-published The Frustrated Investor. In 1998, he was elected to the board of the National Futures Association. He currently runs enjoytheride.world, a website dedicated to trader education. He is also the chairman of the board of Standpoint Funds.

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

  • Video of philosopher Alan Watts
  • How Basso manages his emotions during both losing and winning periods
  • What drove Basso to “enjoy the ride” and whether there were periods in his life when it was difficult to do so
  • Exit strategies on winning positions
  • Basso’s use of hedges
  • The process behind taking a developed system from testing to live trading
  • What Basso learned from his earliest large drawdown
  • Basso’s use of money management and risk control
  • Basso’s advice to the first time programmer
  • How to handle skeptics of trend following
  • Whether Basso considered the notion of serenity from the very beginning of his career
  • The career of John W. Henry
  • Basso’s coin flip entry method, and the importance of exit strategies
  • Percent betting
  • Diversification
  • What would cause Basso to stop trading a particular system
  • Comfort with uncertainty
  • Basso’s views on initial capital at risk vs. unrealized gains
  • Fighting against your gut reaction when your system tells you otherwise

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Struggling with the Corporate “Thing” and Podcast Tonic

Posted on by Michael Covel

Feedback in:

Michael, just a quick note to say thanks for making the effort on producing the Podcast.

I travel around a lot in my car working for ‘the man’. But as you know, ‘the man’ sucks and I find myself spending more and more time looking at Trend Following opportunities and listening to you, as ultimately this is what I will be doing. And I totally respect your forthright, no complicit views. I have always struggled with the ‘corporate’ thing and have never been happy really working for the man. Yes, I like a lot of the people I work with, but the bosses expect more and more and more and especially in this economy they know they have you over a barrel. Hey, it just pays the bills man. Don’t love my job, but love trend following.

I find your monologues not only interesting, but highly entertaining. You also have a great knowledge and taste of music which adds to the mix. After a lot of expensive mistakes trading over the years that I have finally within the last couple of months as Jake would say, ‘Seen the light’. By the way The Blues Brothers is one of my all time favorite films and you playing that clip when they are sitting at the little desks in front of ‘The Penguin’ made me burst out laughing on my own in the car! “I guess you’re really up shit creek then.”

Listening to your successful trend trader guests is great because although they are clearly very [successful] men they still talk about the basic principles with enthusiasm and authority. The biggest lesson I have learned (beyond obviously not making those expensive mistake again) is RISK MANAGEMENT and not to get personal on trades. If you ignore these two then its curtains my friend!

I hope you come over to the UK as I’d like to shake you by the hand.

Keep it going.

Kind regards,

Simon G. Monmouth, UK

Thanks Simon for the thoughtful feedback!

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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Ep. 80: Robert Greene Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Robert Greene
Robert Greene

My guest today is Robert Greene, the bestselling author of the classic book, “The 48 Laws of Power”, in addition to other bestsellers such as “The Art of Seduction”, “The 33 Strategies of War”, and “The 50th Law” with musician and entrepreneur, 50 Cent.

The topic is his book Mastery.

In this episode of Trend Following Radio we discuss:

  • The influence “The 48 Laws of Power” had on Covel’s own writing
  • Using the 48 Laws as a defense strategy rather than as a cutthroat offense
  • Some of Greene’s early influences that led him into his writing career
  • Using Zen Buddhism and meditation as a tool to gain perspective and focus
  • The importance of using your unique life experiences in your career to create an irreplaceable style
  • Embracing opportunity

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