Category: Trend Following

Feedback in:

It challenges me to net out they symptoms of my trading limitations, but I’m afraid I’ll still need too many words because if I could define my problems succinctly, presumably I could solve them. After being at it for six years, I’ll say I try to identify Supply and Demand levels on Hourly and 5 minute charts and then compare Slow Stochastic momentum and Hull Moving average slopes on Weekly, Daily, and Hourly charts and look for long entries into pull-backs into the Demand Zones [or shorts in the Supply Zones] I found on the hourly and 5 minute mark-ups. Recently with the Tweet-caused dip of 12/2 through 12/9 or so, I could see several FAANGS drop into Demand Zones so went long using a synthetic Risk Reversal and profited during the next 2 weeks. There was another market dip 12/30 and 12/31 for profit during the following 2 weeks. But If I overstay, as I have with options expiring 12/31, my longs suffer with the pull back unless AMZN recovers. My method for identifying Trend Direction is by having all three time frames [Week, Day, Hour] agree, or maybe have the hourly leading up from Over-Sold for potential recovery of Day and Hour at Over-Sold lows. I was using information from a Trend Trading group which got whipsawed in the consolidation last June, July, August and I lost by just following their [name], so started looking for a method with better stats. I have two big problems:

1. Identifying Direction consistently for long or short Risk Reversals on 2 to 4 week duration.

2. Discipline to apply rules consistently plus market awareness to observe accurately the difference between a U-Turn short in direction versus a pull-back into a Demand Zone for a continuation long. [And the complimentary direction for short side.]

I bought your Little Book from Amazon after hearing your interview podcast with Tom Basso someone referred me to, but haven’t received it yet. Sorry I didn’t buy it from your site!

Thanks for thinking of me, but since you mention Tom Basso let me say you don’t sound like Tom.

I would cut your losses and leave the strategy you describe ASAP.

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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.

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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.

Feedback in:

Hi Michael,

I got your book Trend Following last November after seeing it in a book store in the UK. Ive been reading it and that led me to your podcast on Spotify. With so many episodes to get through I decided to start with Ep 1 and make my way through them which is where I found your email address.

Prior to reading your book I had no investing experience and was not aware of the term “trend following” so I have really approached this as a blank canvass. I feel quite lucky in the sense my first dealings with trading has been your work as opposed to something like the endless instagram adverts you see today. The reason I’m reaching out is I was wondering if you could recommend other books, websites and industry figures to read to help me broaden my understanding. Of course after completion of this one I’ll buy your other books!

Kind regards
Paul

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.

Subscribe to Trend Following Radio on iTunes

Please enjoy my monologue Take Shots 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!)
• Listen on Spotify.
• Listen on Stitcher.
• Libysn RSS.
• Download as MP3 by right-clicking here and choosing “save as.”
• Free Video.

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

Feedback in:

Hi Michael,

I’m struggling to get out of the gate so to speak. I have a rather large family and depend largely on my trades to build my account. I was doing rather well but hit a wall last spring, got hot again in December the hit the wall again with the coronavirus frenzy being promoted by the media. I’m trying to establish a trading system that I can use (I’m a construction superintendent so sometimes my job gets in the way of following the market during the day) to scale my accounts and trade profitably (hopefully full time someday). I recently read The Richest Man in Babylon and am trying to prioritize paying myself first to help build my accounts. I’m currently reading The Complete TurtleTrader, which has led me to where we’re at now.

Thank you,

Jason L.

To start: 1, 2, 3, 4, 5, 6.

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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:

My biggest problem is focus. It’s hard for me to stay focused on the market and on educating myself, or anything else for that matter. My mind is always filled with a million other things going on at work and at home. I have been in and out of trading for the past 25 years, and my best years are when I break even. I work 14 hours a day 7 days a week and don’t have much energy to focus on reading a book or a computer screen and end up trying to take shortcuts or listen to ill advice. I do travel a lot and it seems to be the only time I get anything done is my time between work projects, which means either sitting in an airport or on a plane.

Also, I have no support system, not at home or friends. They all think it is gambling, so I don’t talk about it to anyone because I’m tired of the negativity.

Any suggestions?

Thanks.

Joe

If you can’t control your time to learn something new… I have no suggestions.

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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 Nir Eyal, an Israeli-born American author, lecturer and investor known for his bestselling book, Hooked: How to Build Habit-Forming Products. He earned a B.A. at Emory University in 2001.[6] He then worked for Boston Consulting Group and a solar panel installation firm before attending Stanford for his MBA.

The topic is his book Indistractable: How to Control Your Attention and Choose Your Life.

In this episode of Trend Following Radio we discuss:

• Why distraction at work is a symptom of a dysfunctional company culture—and how to fix it.
• What really drives human behavior and why “time management is pain management.”
• Why your relationships (and your sex life) depend on you becoming indistractable.
• How to raise indistractable children in an increasingly distracting world.

Mentions & Resources:

• Nir Eyal
• @nireyal

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:

I have tried scalping, and I am not consistent at it. I had an automated scanner at one time, and the market changed, resulting in too many losses. I tried to change that scanner to remove automation, it was not consistent either. I am now trying to learn how to trade stocks up on news, but am not consistent yet, and many seem to be short plays. I am seeing if maybe options would be better suited for those stocks. I don’t short at the moment and have a small account due to previous poor risk management, of which I have greatly improved, but now I seem to be overly cautious at times. I have and am increasing my tape reading skills, along with pattern recognition, which has helped. Maybe I have found my niche, I just don’t know it yet. I have started collecting data from my trades to find what works and doesn’t work.

I want to find what works and have been at this over 3 years trying to find what works. Just when I think I am close to becoming consistent, it seems the market changes. I don’t know if it’s my scanner that has too many parameters or not the right parameters for what pattern I am looking for. I do have a huge fear of losing of which I am working to overcome. I am determined.

William

Scalping is like Vegas slots.

Trend following, my world, is not that.

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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.