Mike, just finished episode 999. No bullshit, but this is the best podcast on the planet. Absolutely fucking brilliant.
That episode you mean?
That episode made me chuckle. But no, the entire series of podcasts. The range of topics, the no BS honesty, the incredible guests, the humor, the insights. Fucking world class.
I’m using Charles Schwab, Robinhood and a few other things and mostly self directed. I’m now wanting to understand Crypto and the new NFT world.
You have a broker. You know what you want to trade. But you have no strategy yet?
I’m 57 years old. I’m a previous 15 year veteran actor and business owner both of which were financial struggles…..On a plan to pay off some debt over the next 4 years. I have two kids in college that I’m paying for. I have a $1000 in a Roth and $1000 in reg IRA. I have $1500 in a Farm-a-Field investment with Cattle (which is of great interest to me). I have a very small Robinhood account, a small brokerage account at Schwab and a small CoinBase account. I work for an ESOP co in the Truck Trailer Auction Business and have $100,000 ish in stock that I can’t touch and has a five year payout at retirement. My wife and I keep our assets separate for now (second marriages) we own our home and she has about $85,000 in retirement accounts. I’m at a point in my life where my main focus is getting debt free BUT I also can through a little money at investments for the future. I don’t want to miss opportunity in the Bitcoin, NFT, and other type risky investments while I’m watching others make huge profits. My interest area’s are Livestock, Agriculture, Ranching, Trucking, Auctions, Real Estate, Farming, Traveling, Boating, Photography, Investing and trying to find platforms I understand or at least have interest in it with my investments.
I live in Charlotte, NC
A great friend of mine turned me on to your stuff.
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Thank you for reading my mail. Came across your podcast, and thought this is where I can pick up again. To put it bluntly, my biggest challenge is I have no idea what I am doing after 3 months. I started trading 3 months back. As others have said it, beginner’s luck. I managed to make few hundred bucks daily, “following trend”. I thought trading was easy. I thought I saw pattern in CEI, buying long, and selling. There were some consistency in the way market moved in late Sep for a few days, until I found out that was just luck being kind. Tried to pick myself up from tips in the media. Switched between PROG, PHUN and then some more. Found myself trailing further. In short, I learnt I am practising bad trading. Probably did not set myself up proper at the start, and do not have a system in trading. Current plan is to save up, and hopefully, come back in a year or two, lessons learnt. Once again, thank you for your time, and I am grateful for the training video. I will make full use of it. Appreciated. Have a great holiday and may it bring you and your family loads of blessings, love, joy and warmth.
Please enjoy my monologue Long and Short Systematic with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
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I have not been able to pull the trigger to sell a portion or all of a stock to cash out since I thought it was a more long term hold stock. But in hindsight, I knew I should have at least cashed out half and continued to follow when my portfolio was up 75% or so. I am a relatively new investor. It is all now back down to my original investment level and looking back, I should have sold and reinvested in new opps.
I am an engineer (35) which just recently got opportunity to trade (3rd world country and lots of sanctions). Last year I have been working 16 hours a day … I have read tons of books from different people about different techniques but these 2 had major impact on my direction. I got familiar with your work from your podcast especially the one with Parker got me (I did not know him at all before). Then listening to market wizards and Richard Dennis made me to think on the strategy. Started to program and did a little bit of back testing and saw that 20 day break out, indicates almost most of my good trades during past year and even better. My problem for now is about strategy itself, I think, I have some ideas about entering the trade but there are some questions:
There is great focus on diversification. Could we claim that being in the stock market, but trading different groups is same as trading in different markets?
It seems that position sizing is about future markets, but I am not sure if it is valid for stock markets as well?
Stop loss of 2 ATR is quite huge which kills the size. If a stock in 20$ has 1.5 ATR then if I want to risk 1000$ it means (with 2ATR risk) around 6K$ which is relatively small size. Should this be adjusted as you indicated in your book?
Thanks for reading this email and thanks in advance for any help.
Best regards,
T.
Thanks for your note. Two big points:
1. Un-leveraged stocks alone is a difficult path. Why do you want no leverage?
2. Stocks are often highly correlated. You need to assess correlated markets.
