Michael, Caught your interview with Krainer. I’d like to think you two have taken “trader thinking” to a higher plane. I’m very familiar with charts. What else do you incorporate into your thinking?
Keep up the good work!
John in Ohio
Thanks John, but trend following is not about charts. It’s about price. The 3 best trend following indicators are:
Hi Michael, I’m now reading your book Trend Following after reading The Turtle Trading. What great books! My biggest challenge with trend following is actually finding them. I already managed to enter some profitable trades, and of course some losing trades, but I really find it difficult to screen for trades and find them. Do you have any tips about this manner? Thanks a lot for your great work! I really appreciate that. Roee V.
With trend following? You don’t find trends: Read.
My guests today are Douglas Kenrick and David Lundberg-Kenrick, a father and son team.
Douglas Kenrick is a professor of psychology at Arizona State University. His research and writing integrate three scientific syntheses of the last few decades: evolutionary psychology, cognitive science, and dynamical systems theory. He is the author of over 170 scientific articles, books, and book chapters, the majority applying evolutionary ideas to human cognition and behavior.
David Lundberg-Kenrick is the Media Outreach Program Manager at Arizona State University. He creates multimedia supplements for psychology textbooks, produced and edited videos for use in psychology experiments, and worked on documentaries about evolutionary psychology, including the BBC’s “The Science of Seduction” and his current project “The Caveman Goes to Hollywood.”
The topic is their book Solving Modern Problems With a Stone-Age Brain: Human Evolution and the Seven Fundamental Motives.
In this episode of Trend Following Radio we discuss:
Violence
Dangers of stone-age problem solving
A new and systematic way to survive and be happy in the modern world
Dear Michael, I used to look at videos about trading strategies “that work”, like a lot of beginner traders do. After trying to understand multiple strategies I never fully understand why they actually work. I have done some research about the trading psychology, but can’t quite understand it all. I am also the only one of my family and friends who is interested in trading. Therefore it is quite difficult to find good help and clear information for a beginner like me. I suppose my biggest struggle with trading is completely understanding why the stock price go up, down or neither.
Kind regards,
Robin
The goal is not to understand why. The goal is to make money.
Hello Michael, Since I started, I developed the “stop-loss” mindset. I added a stop-loss order to all of my current stock profile and last week this offloaded 17 out of 28 positions. I think my mindset is an observant mindset, so I looked at what I did and evaluated the transaction costs, and trading costs, and as well the downside if I had not taken this position. Thanks to your free course. I think I saved myself what I could not really afford to lose, more than 5% of my retirement savings. I am not sure if this is a mindset or just an action in real time. I also adjusted my stop-loss today for a couple of stocks that were going on the long side and gaining more profits to protect my profits. The mindset change is from a passive investor to an active one in my own financial life as I have always been passive with respect to investment. I guess the main mindset that I would like to adapt is the “trader” mindset. I always had this assumed belief that “traders” are different creatures than us “professionals” and that they typically learn the tools of the trades through family systems that they inherit. And that I was born in a family of “professionals” are cut out of this “trade” business or “traders”. But, when I read about growth mindset, it means that we can acquire the tools or skillset as we go (contrasted to a fixed mindset). I concluded that I had a fixed mindset about the traders and that I would like to change to have a growth mindset.