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Category: Trading 101

Buckle Up, It Will Soon Be Fun!

Posted on by Michael Covel

Feedback in:

Michael,

We must be close, Sir.

Not that I would expend an ounce of energy to defend any NY-based hedge fund (says the Chicago CTA), but as if this has just been a typical period since Mar ’09 “No more than 23% of active managers in any segment of the U.S. equities market outperformed the S&P 500 over the past 5 years” practically brings tears to my eyes – in laughter. And also hope. Hope that we are close to the next “unforeseen sequence of events” typically favorable for our preferred style of trading.

Attached is from this weekend’s Wall St. Journal in case you missed it.

Keep up the great work!

Thanks!

The Deranged Trust Pension Funds
The Deranged Trust Pension Funds

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
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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. 450: Making Money Every Month Is Fantasy with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Making Money Every Month Is Fantasy with Michael Covel on Trend Following Radio
Making Money Every Month Is Fantasy with Michael Covel on Trend Following Radio

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Please enjoy my monologue Making Money Every Month Is Fantasy with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

In this episode of Trend Following Radio:

  • Long Term Capital Management
  • Bernie Madoff
  • Leverage
  • Diversification
  • Indian Stock Market

“Leverage doesn’t matter in this case. Such consistency with low drawdowns goes against nature and cannot exist if it trades long enough.” Michael Melissinos

Mentions & Resources:

Listen to this episode:

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

Expensive Lessons, But Wiser for the Experience

Posted on by Michael Covel

Feedback in:

Hi Michael,

Almost finished your “Trend Following” and noticed there are…[some] people having negative issues with trend following. Well, I can tell them something…

In 2006 I started with 20,000 USD, no trading training and I [took training]. The key here is that I had no trading education. In Oct 2008 I made 300,000 USD and after 7 years of trend following I turned the initial 20,000 into almost 800,000. I then thought I know how to trade and started day trading and then (as many traders before me) lost everything. I [then] came to the conclusion that I knew nothing about trading… expensive lesson for me, but I knew what was possible [with trend following].

I have for the past year gone through an extensive training process [books and a course with (name)]. I still get the [name] data every day and will soon start again. Obviously I know a lot more than before, but the important thing is that I could turn 20,000 into almost 800,000 (drawdowns, etc. included) and I made money on ONLY 35% of my trades, that is without ANY formal trading knowledge, just following the trend.

So, no one [will] tell me trend following does not work, is dead, or anything else. It is alive and well and will be forever.

Just a private experience I would like to share.

Kind regards,
[Name]

Thanks!

Up and Down
Up and Down

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. 448: Mike Lofgren Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Mike Lofgren
Mike Lofgren

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My guest today is Mike Lofgren, an author and a former Republican U.S. Congressional aide. He retired in May 2011 after 28 years as a Congressional staff member. His writings, critical of politics in the United States, particularly the Republican Party, were published after his retirement and garnered widespread attention.

The topic is his book The Deep State: The Fall of the Constitution and the Rise of a Shadow Government.

In this episode of Trend Following Radio:

  • The deep state phenomenon
  • Military industrial complex
  • National debt
  • Negative interest rates
  • Does your vote matter?

“If we were ever able to get the money out of politics, that would be the precursor, that’s the precondition for any other reform.” – Mike Lofgren

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Ep. 447: Ben Hunt Interview with Michael Covel and Trend Following Radio

Posted on by Michael Covel
Ben Hunt
Ben Hunt

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My guest today is Ben Hunt, the Co-Founder and Partner at Second Foundation Partners. He is also the author of Epsilon Theory, a weekly publication that examines capital markets through the lenses of game theory and history. Since its launch in June, 2013 more than 100,000 copies of Epsilon Theory notes have been read by professional investors in more than 110 countries.

The topic is his Epsilon Theory.

In this episode of Trend Following Radio we discuss:

  • Monetary policy
  • What drives the value of currency?
  • Economics in recessions
  • Systematic models
  • Central Banks
  • Policy controlled markets
  • Expectations of the public markets

“Markets are too important to be left to investors.” – Ben Hunt

“It goes back to what I was saying about the overwhelming debt that sloshes around in the world and there are only three ways to get out of that: You can grow your way out, you can inflate your way out or you can assign losses and try to reset.” – Ben Hunt

Mentions & Resources:

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Trend Following Only Podcast Episodes

Posted on by Michael Covel

Here is a wide sampling of trend following trading interviews on my podcast. Enjoy!

Michael Covel
Michael Covel

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.

“What does the visualization do?”

Posted on by Michael Covel

Feedback in:

Hi,

Are all trend followers use spreadsheet alone to trade? Or they also use charts for visualization? I am having a hard time trading using spreadsheet alone and I tend to see a chart. It provides the visualization I need.

Thank you

Best Regards,
[Name]

What does the visualization do?

Are your trading decisions based on the price or visualization of a chart?

It better be price.

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.