Category: Trend Following

Feedback in:

The biggest challenge I have faced is switching from a “buy & hold, averaging down” to a “cut my losses quick and extend my gains” approach. This is very hard for fundamental-based portfolio managers, because we tend to have the illusion that we know stuff. “O know the company”. “This negative price action doesn’t make sense, so I will take advantage of this drop to increase my position”.

Once I adopted a more humble attitude and started to respect the trends, things got better. But I’m still doing very basic, intuitive stuff. There is still a long way to go.

Regards,
Fabio

Do you have a trend following system? Read.

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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.

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Please enjoy my monologue When Mass Panic Rolls Out You Need A Plan with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

Listen to this episode:

• Listen to this podcast on iTunes. (Please leave a rating!)
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Want to learn more Trend Following? Watch my video here.

Feedback in:

Dear Michael,

The biggest challenge I have in trading is discipline.

Because I don’t have a strategy that works, I hop from strategy to strategy and am unable to make any profit.

If I know there is a proven strategy that will work, I can be patient to manage it.

Listen to all episodes here.

Ready now?

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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.

Feedback in:

Good Morning Mr. Covel,

I currently have a very simple trend-following algorithm and have had some success with it. I’m 63 years old and have been in the financial services business for 27 years. I started out with Dean Witter, which became Morgan Stanley. They never told us when to sell, just buy the new product, new mutual fund, and hold on forever. My clients got crushed during the dot com crash. It was brutal, not just for my clients, but for my career as well. I was fortunate to meet a computer programmer who was building a trend-following algorithm. We’ve updated it over the past 15 years, but it’s still a simple program that’s based on weekly volatility. I’m looking forward to learning more and becoming more successful in understanding and trading the trends.

Thank you again.

Best regards,

Tom M.

Thanks Tom. Some good places to start: 1, 2, 3, 4, 5.

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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.

Feedback in:

Hey Michael. Thanks for all you do in the trading community. I’m relatively new to trading, I’ve only been studying trading since 2018. Before that I didn’t know the difference in bullish vs bearish or green candles vs red. But I have tried to learn as much as possible over the last two years. I haven’t made much but I haven’t lost a lot either so I guess that’s alright. I first came across the notion of trend following listening to a [name] podcast episode with [name]. He talked about following the trend and position sizing and risk management and letting your winners run while cutting your losses and finding your edge in the market. That really resonated with me and I’ve been trying to learn what I can in that direction. Not long after that I came across your podcast and work. I think my biggest challenge has been to find an edge and find the right platform to trade with that edge. I’ve been working through [name] strategy using AmiBroker. I’ve been a software developer for 20+ years so when I came across the idea of coding in an edge and letting the computer generate the signals (as opposed to emotions or some random “stock picking guru” on YouTube) was very appealing to me. I’ve only been at it for a couple months now. I’m always trying to continue learning and wanted to see what all you had available. I haven’t read your books yet but I think that’s next for me. I’ve enjoyed your book segments you’ve had on your podcast.

Thanks for listening to me ramble on and for all the great trend following education!
Kit M.

Sounds like you are on a smart path. More to read.

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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.

Subscribe to Trend Following Radio on iTunes

My guest today is Michael Shawn Malone, an American author, columnist, editor, investor, businessman, television producer, and has been the host of several shows on PBS. Currently (2009), Malone is a columnist for ABC News, an op-ed contributor for The Wall Street Journal, a contributing editor to Wired, and the editor-in-chief of Edgelings.com, a website focused on business and technology news in Silicon Valley. He graduated from Santa Clara University in 1975, and received his MBA from SCU in 1977.

The topic is his book The Autonomous Revolution: Reclaiming the Future We’ve Sold to Machines.

In this episode of Trend Following Radio we discuss:

• William H. Davidow and Michael S. Malone go deeply into the enormous implications of these developments. They show why increases in productivity no longer translate into increases in the GDP and how zero cost, one-to-many communications have been turned into tools for cybercrime and propaganda. Many of the book’s recommendations–such as using taxes to control irresponsible internet behavior and enabling people to put their data into what are essentially virtual personal information “safety deposit boxes”–are bold and visionary, but we must figure out how we will deal with these emerging challenges now, before the Autonomous Revolution overcomes us.

Mentions & Resources:

• Michael S. Malone

Listen to this episode:

• Listen to this podcast on iTunes. (Please leave a rating!)
• Listen on Spotify.
• Listen on Stitcher.
• Libysn RSS.
• Download as MP3 by right-clicking here and choosing “save as.”
• Free Video.

Jump in!

Feedback in:

Dear Michael, I am a Zoroastrian by religion and Indian passport holder. I trade the Nifty Index weekly options on the National Stock Exchange based at Mumbai in India. I sell naked call or puts and wait for weekly expiry to pocket the premium. If the index moves sharply in my favor I close immediately and do not wait for expiry. If it moves against me I either hold on if I am confident it will reverse or roll the trade over to the next expiry. I almost never buy options. Sometimes I trade a spread more as a hedge to my naked position. I may close one leg of the spread going against me and let the other profitable one run.

My biggest challenge has been finding someone trustworthy who can deliver good guidance and receiving accurate trading signals. My experience shows that accumulating profits is a slow and long procedure whereas one loss sets you back and the game begins again. I have only one trade at a time using all my available funds. I find it difficult to concentrate on multi trades. I know I am advised against it but this is what I do.

I am 70 years old in service employed as an accountant, hence I am more of a positional trader not a day trader. I had placed all my funds in a managed account trusting someone and overnight I lost everything. I am now trying to earn a regular income to permit me to retire.

Best regards,
N.

You need one strategy. I don’t see that. I see all over the map. Start here.

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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.