Category: Trend Following

feedback in:

I come from a fundamentalist approach in the choice of assets, doing analysis of multiples, analyzing strategy and competitors of companies and even doing valuation. The main change in my mindset was to understand that this approach is limited and that technical analysis can help me to improve my results, this being a complementary strategy to my primary fundamentalist choice. The biggest challenge today is whether or not to enter an operation and how to set my stop loss and when to finish the operation, making profit.

Best regards,
Miguel

So you want to blend trend following with fundamentals?

Not a good idea. No evidence for such.

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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.

Subscribe to Trend Following Radio on iTunes

My guest today is Ming Zeng. He was chief strategy officer of Alibaba Group from January 2008 to 2019. He joined the company in August 2006 as executive vice president of strategy, and served as acting president of China Yahoo! from November 2006 to December 2007.

The topic is his book Smart Business: What Alibaba’s Success Reveals about the Future of Strategy.

In this episode of Trend Following Radio we discuss:

• He explains how Alibaba and companies like them are using these technologies to automate decisions, develop new products, and plan strategic positioning.

Mentions & Resources:

• Ming Zeng

Listen to this episode:

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

Jump in!

Feedback in:

Hello Michael,

I listen to your podcast and I have the latest version of Trend Following. I had reached out to you recently on LinkedIn, didn’t hear back but I recall you discussing one time on your podcast how you don’t pay much attention to LinkedIn. Of course it could also be that you’re busy or just simply chose not to reply (understandable and either way, no harm no foul and no love lost).

Anyhow, I just thought I’d reach out one more time. I decided to switch careers and undertake an MBA full time and concurrently seek my CFA designation; I only have one more term in my MBA and CFA level three next June.

I keep hearing good things about [blank] and I’ve been thinking about heading there post MBA/CFA and hopefully start my financial career there if that’s where the trend is. (I feel North America is overdone, along with London, Hong Kong etc).

I’d love to hear your thoughts/opinion if possible.

By the way, awesome episode on Feynman, he’s one of my intellectual heros. I read the Character of Physical Law in high school and almost ended up going into physics. I highly recommend the book by Lawrence Krauss titled Quantum Man, it’s about Feynman. I know you had Krauss on your podcast, he’s actually a friend of mine 🙂

Sorry to blabbering. Again, no harm no foul. I just had to give it another shot and hope you don’t hold that against me; certainly not trying to pass you off or waste your time.

Thank you for your podcast and insights!

Thanks for the great feedback, but as for jobs… that my friend is not my business.

Read Seth Godin’s book Linchpin. First 30 pages.

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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:

Hi Mike,

I have recently picked up a copy of Trend Following and also found your wonderful podcast. Just finished listening to as much Tom Basso and Jerry Parker as you have on there and feel like Neo from the Matrix when he wakes up from having all the martial arts uploaded into his brain.

*opens eyes and turns to Morpheus* “I know kung fu”

Anyway, just wanted to thank you for providing this fantastic service to the world of trading! Also, at the end of your podcasts you say to email you and that you’ll send us everything that we need to get started. If you have time could you please point me in the right direction?

If it helps figure out what I need, my background is like this:

– Been in the market since 1999 (got in due the mania, subsequently got killed and learned great lessons from getting killed…good thing I was only 20 and didn’t have much to lose!).
– Have become a competent investor in the value investing mold over the last 20 years and believe that it works, however who has the time or inclination to learn everything and anything about hundreds of companies? I do this for fun but cannot spend 40 or 60 hours a week doing it.
– Have traded on the side as this is what I love to do.
– Recently found Trend Following, and the light-bulb went off–> this is the thing I knew worked intuitively as my most profitable trades have been from breakout highs/lows.
– Recently handed my company to a CEO that I have been grooming for a few years and can now follow my passion of trading. willing to work hard at it.
– I do not have the gambling/excitement about trading any more, and just want to make money. Am very happy to just set buy and sell stops according to a mechanical system and take all the losing trades if it means winning overall. Losing 70% of the time and taking draw downs is fine with me.
– Generally have always had a probability based mindset. I love games like limit poker where if you play correctly and play the odds, you will eventually win out. I do not care about short term unlucky moves against me if the long term system is sound. Have made a good chunk of money in poker and fantasy sports where you can systematize winning

Thanks again!

Mike S.

Video sent!

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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:

Hello Michael,

A couple of years ago I read your TurtleTrader book, got real excited then dropped it, and now have read Trend Following, I have The Little Book Of Trading queued up to read as soon as I finish Jesse Livermore’s How To Trade In Stocks and Nicolas Darvis’s How I Made $2,000,000 in the Stock Market.

While I am a full believer I am embarrassed to say it took me a few years too many to get started. I do have two questions I haven’t been able to nail down an answer to just yet that I’m hoping you can point me in the correct direction to finding the answers to:

I’ve been listening to your Podcasts, currently up to #18. One thing I’m a bit confused about is all the talk about the accounts under management taking a hefty draw down while the market is moving sideways. Wouldn’t a trend follower be out of the market at times like those waiting for a trend to develop? Or is it because they are managing other peoples money they still have to be in the market trying to catch any trend no matter how small?

Thanks for the attention,
George

You can’t be a trend follower on one market alone. Whipsaws from many markets, small losses, add up.

That’s how it happens. Make sense?

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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.

Richard Feynman

Subscribe to Trend Following Radio on iTunes

Please enjoy my monologue Feynman Teaches Us All 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,

My biggest challenge has always been patience. Not being able to be patient enough to wait for the right moment and presuming all the time that market would go in a certain direction before this happened. I did it over and over again despite a track record that told me to stop.

Often my lack of patience took me to lower time frames to see more action, and I tell you so many people in various forums on the internet look for signals on the 15 min time frame, or even 5 m. This got me even worse results since it is really guessing on the noise of the market, full of fake directional moves and quick comebacks.

My guess after reading your books and the material you sent me by now is…I think I pretty understood the signal of entry, but I did not get exactly the correct exit point–the moment when we can be fairly sure the ride is over. I hope to get more info on this aspect in your soon following material.

All the best,
Paolo (Brazil)

Don’t touch that 5 minute stuff!

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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.