Trend Following Attitude with Michael Covel on Trend Following Radio
Please enjoy my monologue Trend Following Attitude with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
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My guest today is Jerry Parker, an original Turtle, trained by Richard Dennis. However, since then he has very successfully run a managed money firm called Chesapeake Capital.
The topic is Trend Following.
In this episode of Trend Following Radio we discuss:
Series of tweets written by Parker and use them as a jumping-off point for conversation. Topics include price action, “normal” market behavior
Recent moves in the Swiss Franc
Paying attention to entries as well as exits
Why investors are often their own worst enemy
The first moment that Parker heard about price-based trading
Becoming obsessed with asymmetrical risk and reward
Why looking at trend following losses is important
Why you can tell a system is robust if it has big drawdowns
Backtesting and treating all trades with equal weight
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My guest today is Michael Lardon, one of the premier mental performance coaches in the world, with clients in more than a dozen professional and Olympic sports. His athletes have won major golf championships, Olympic gold medals, Super Bowls and World Series titles, among other achievements. He is an Associate Clinical Professor of Medicine at the University of California San Diego and a Consulting Psychiatrist to the United States Olympic Teams at the Olympic Training Center in Chula Vista, CA.
The topic is mental performance coaching.
In this episode of Trend Following Radio we discuss:
Lardon’s early experiences playing professional table tennis; the “slowing down of time” and how it affects performance
The importance of mental performance in sports
Phil Mickelson’s loss at the 2013 Open and his win at the British Open a month later, and how Lardon was assisting him during this period
“The yips”, and what is going on in the mind when someone can no longer perform a simple activity they used to accomplish easily
Neurological vs. psychological “yips”
Lardon’s opinion on what’s happening with Tiger Woods currently
Narrow, intense focus vs. dropping the intense expenditure of energy when you don’t need it (ie. what do you do with your downtime?)
The process of desensitization
The deliberate plan for improvement and the importance of writing things down
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Despite the popular conception of hedge funds as masters of global economic trends, these managers [read: TREND FOLLOWING] typically don’t have a strong view of where individual markets are headed. Instead, they frequently use significant leverage, or borrowed money, to invest based on momentum, using computer models to forecast which prices will continue rising or falling. That can pay off in a big way even when they don’t precisely predict the headlines. For instance, Cantab Capital, the roughly $5 billion U.K. firm founded by former Goldman Sachs Group Inc. partner Ewan Kirk, scored a 13% gain in January, according to investor documents and a person familiar with the firm.
Hey Michael, shout out from the Great North. I’ll keep it short, I know your a busy guy. Just wanted to say thanks for your efforts to continuously put out quality content on your podcasts for free. Your Little Book changed my life man. I devoured it within what seemed like minutes, following many hard to read technical analysis books. Drowning in books, having the belief trading had to be an extremely complicated venture [was killing me]. Your influence gave me the AHA moment many times over again. I left you what I believe to be be a stellar 5 star review on iTunes. I don’t know if you are still sending out signed copies of material, would be cool though. I ordered Trend Commandments today on Amazon. I will be reading it shortly. Thanks again.