Please enjoy my monologue Ed and Marty Give Clues with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
Jesse Livermore’s bio ‘Reminiscences of a Stock Operator’ is always good reading (PDF).
Excerpts:
“I think it was a long step forward in my trading education when I realized at last that when old Mr. Partridge kept on telling other customers, “Well, you know this is a bull market!” he really meant to tell them that the big money was not in the individual fluctuations but in the main movements that is, not in reading the tape but in sizing up the entire market and its trend.”
“Another lesson I learned early is that there is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again. I’ve never forgotten that.”
“You watch the market — that is, the course of prices as recorded by the tape with one object: to determine the direction. Prices, we know, will move either up or down according to the resistance they encounter. For purposes of easy explanation we will say that prices, like everything else, move along the line of least resistance. They will do whatever comes easiest, therefore they will go up if there is less resistance to an advance than to a decline; and vice versa.”
“I think it was a long step forward in my trading education when I realized at last that when old Mr. Partridge kept on telling other customers, “Well, you know this is a bull market!” he really meant to tell them that the big money was not in the individual fluctuations but in the main movements that is, not in reading the tape but in sizing up the entire market and its trend.”
Jesse Livermore Books:
• How to Trade in Stocks (PDF)
• Reminiscences of a Stock Operator (PDF)
My guest today is Rob Arnott, an entrepreneur, author, investor, and writer. He serves as Chairman and CEO of Research Affiliates LLC. advising on over $160 billion dollars in institutional investment assets. Rob is one of the worlds preeminent voices on investment strategy. Rob has been with quantitative investing since it’s inception in the 70’s. With the rise in computer capabilities, quant traders were able to start to make a name for themselves in the trading community.
The topic is quantitative investing.
In this episode of Trend Following Radio we discuss:
An addiction to complexity
Fundamental indexing
Momentum trading
How to use valuation
Benchmarks
Diversification
Modern finance
Weighting your portfolio
“I think the quant community has a lot of issues. Some of them relate to an addiction to complexity and some of it relates to a willingness to obfuscate. If you make your ideas complex enough so that nobody can understand it, that creates a seduction attraction to some, but people shouldn’t buy something they don’t understand.” – Rob Arnott
“We are in a business where you win by making fewer errors.” – Rob Arnott
My guest today is Jerry Parker, the founder of Chesapeake Capital Corporation, a global investment manager headquartered in Richmond, Virginia, in 1988. He was an original TurtleTrader and was also the most successful TurtleTrader. He has had unbelievable success over his four decade career. Jerry has a straightforward way of breaking down how trend following works.
The topic is Trend Following.
In this episode of Trend Following Radio we discuss:
Please enjoy my monologue Don’t Curb Your Enthusiasm with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.