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Category: Trading 101

Ride the Bucking Bronco: The Nature of the Trend Following Profit Beast

Posted on by Michael Covel

Some trading 101 from Trend Commandments:

One of the most useful criticisms that you can use to further your understanding centers on prediction. Trend followers… do not predict a market’s timing or distinction. Trend followers react to market movements. It is a critical distinction best seen in the words of trend follower Bill Dunn, “We don’t make market predictions. We just ride the bucking bronco.”

For more information on books and other resources to further your trend following education go here.

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.

Where Should Beginning Trend Followers Start?

Posted on by Michael Covel

Feedback in:

Hello, I am currently a college student, and am very interested in learning about stock trading. I just listened to your interview on the Tropical MBA podcast, and it was great! As someone who is new to stock trading, with little experience, where should I start? Any advice from you would be greatly appreciated!

Thank you,
Adam D.

Three places:

1. Resources here: trendfollowing.com/resources
2. Training here: trendfollowing.com/products
3. Podcast here: trendfollowing.com/podcasts

That should get you started. Plus, books.

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.

Look Before You Leap Is Mission Critical

Posted on by Michael Covel

An excerpt from my first book, “Trend Following”:

Trend following, like any entrepreneurial endeavor, demands you to be responsible for yourself. Charles Faulkner emphasized the point: “Trend trading and even trading in general isn’t for everyone. As too few people check out what the day-to-day life of a trader is like, and trend trading specifically, I strongly recommend they find out before making a life changing commitment.”

What does “life changing commitment” involve? You commit to not wanting to be right all of the time. Most people, let’s face it, must be right. They live to have other people know they’re right. They don’t even want the success. They don’t want to win. They don’t want money. They just want to be right. The winners, on the other hand, just want to win.

If you don’t want to win–on something in life–go jump now.

Note: Charles has been one of my most popular podcast guests. He will be on soon again.

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.

Ep. 180: Porter Erisman Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Porter Erisman
Porter Erisman

My guest today is Porter Erisman, a former Vice-President at Alibaba Group (2000-08), China’s internet giant. He witnessed it grow from humble beginnings into the world’s largest e-commerce company.

The topic is his documentary Crocodile in the Yangtze.

In this episode of Trend Following Radio we discuss:

  • What it was like working with Jack Ma
  • Short-term vs. long-term entrepreneurs
  • The lack of knowledge/insight America has for China
  • The perceived threat of China to America
  • Whether nationalism played into Ma’s success
  • The commonalities between the greatest internet entrepreneurial success stories
  • Government interference with Alibaba
  • How eBay was defeated by this small startup in China

Listen to this episode:

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Ep. 179: Tim Price Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Tim Price
Tim Price

My guest today is Tim Price, a partner and director of investment at PFP Wealth Management in the UK, an independent asset management and financial planning practice.

The topic is markets and investments.

In this episode of Trend Following Radio we discuss:

  • The subordination of freely discovered prices to policy goals
  • Why the recent trading environment seems “wrong and dangerous”
  • Why Price wouldn’t be able to speak freely working for a large bank
  • Why Price and his colleagues aren’t “doom and gloomers”
  • Why the media neglects to report on black swans
  • Why the role of the Fed is to keep “spiking the punch”
  • The vested financial pushback on having some of these views
  • Risk and “Against The Gods”
  • Why people are hardwired to be loss averse
  • An analogy to the US Forest Service

Listen to this episode:

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Teach Yourself to Be Great

Posted on by Michael Covel

An excerpt from The Little Book of Trading:

Can you teach yourself to trade? Do you realize how important learning on your own is if you really want to be a successful trader? Everything about Kevin Bruce’s trading is self-taught. He started in the basement of the University of Georgia library: The school had old editions of the Wall Street Journal on microfilm. In the basement dungeon, he would compile his own record of the open, high, low, and closing prices for all markets. At the time, Bruce was actually working at a gas station at night, and between cleaning bugs off windshields and pumping gas, he had time to think and research–which is where he would analyze that price data. Bruce had a Texas Instruments handheld calculator that helped him sort through price data collected from the library. He figured out how to mathematically define a trend (in order to profit from its movement). It was a basic trend trading system. It was the same system he had used for the trading game in school with slight tweaks. Ultimately, it was the same one he would use with real money in the decades to follow.

You can receive a free DVD of Bruce here.

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.

If You Want A Guarantee Buy A Toaster!

Posted on by Michael Covel

A question arrived today:

Will your book ‘Trend Following’ help me develop a trading system to become profitable?

I replied: For some people yes, and for some people no. Feel free to follow-up. He replied:

Will your other books help me?

All of my books will help some people. My books will not help all people. There are reasons for this.

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.