Category: Trend Following

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My guests today are Richard Thaler and Alex Imas.

Richard Thaler is a theorist in behavioral economics and a professor of Behavioral Science and Economics at the University of Chicago Booth School of Business. In 2017, he was awarded the Nobel Memorial Prize in Economic Sciences for his contributions to behavioral economics.

Alex Imas is a professor of Behavioral Science, Economics and Applied AI and a Vasilou Faculty Scholar at the University of Chicago Booth School of Business. He studies behavioral economics with a focus on cognition and mental representation in dynamic decision-making.

The topic is their book The Winner’s Curse: Behavioral Economics Anomalies, Then and Now.

In this episode of Trend Following Radio we discuss:

• Behavioral economics anomalies and their persistence
• Trend following, momentum, and mean reversion
• Nick Leeson and the Barings Bank collapse
• Development and evolution of their book
• Applications of behavioral economics in real-world decisions

Mentions & Resources:

• Richard Thaler
• Alex Imas on X
• The Winner’s Curse: Behavioral Economics Anomalies, Then and Now

Listen to this episode:

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

Jump in!

Feedback in:

Michael,

I enjoyed listening to your last podcast on my morning walk yesterday. Hope all is well. I am going to Thailand in January to visit a friend and then my wife and I are taking a cruise that stops in Ho Chi Minh City for a couple of days. Do you live in that area?

Thanks for the podcasts and the books. They have been a great help along the journey!

Jim P.

Enjoy the city!

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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:

Thanks Mike for all you do. Have appreciated you since my introduction to you from Paradigm. Which led me down the rabbit hole. While not a true trend follower myself, it has helped me in so many ways especially the risk management aspects of it. Speaking of that topic, it has helped me in many ways not just in trading but also life with cutting the losers and making for calm and less anxiety! And your podcasts oh my they are phenomenal—your guests reinforcing the mindset has been invaluable. Can’t thank you enough thanks so very much.

Welcome!

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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 Michael,

I started trading last year in the crypto markets.

I have been fortunate that holding Bitcoin along with other altcoins has risen 100% since last year.

Honestly, I don’t know what I’m doing, as I don’t have a system that will give me the 50% IRR over 10 years that I’m looking for.

At this point, I’m holding and came across Dennis on YouTube, but saw that he was uncontactable and that there was no course selling his system.

I then stumbled across your site and was curious.

I have the two picks that you authored and would like to start reading them.

Kind regards,
Tal

Start reading!

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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:

Dear Michael,

I would first like to thank you for writing this book. It has given me a new perspective on trading and managing my money. As I tend to move a lot from country to country, I have made the decision that I need to manage and grow my wealth myself and definitely not depend on any retirement. I have to admit that on a few occasions I have written in the side margin with a pencil “I don’t agree,” but that is likely just part of the critical thinking and my educational journey. I look forward to going over some notes in a year or so.

I just finished Section I of your 5th edition, which closes with your invitation to send the receipt of the book in exchange for your interactive trend following presentation. Hence, attached is my receipt, and I look forward to receiving the presentation you mentioned.

Furthermore, I’m excited to start building and testing my trading system. Two of my current “natures” are FOMO and perfectionism. I think that by reading this book (and trading and reflecting over these past months), I have become more aware of my FOMO. The perfectionist part will be tested as I try to build a “loose-fitted MITTEN” as my system.
Besides that, I feel that trading has and may bring me so much more than just wealth—a true insight into who I am and who I want to be, a mirror for holding myself accountable for my actions, and much more.

I hope you continue to encounter interesting people to discuss ideas with, learn new things, and challenge your worldviews.

I look forward to reading and listening to the rest of the book and other material you have published.

Thank you in advance for sending the presentation.

Best,
Marc V.

Video is sent to you 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.

Subscribe to Trend Following Radio on iTunes

Please enjoy my monologue Attitude Adjustment with Michael Covel on Trend Following Radio.

Listen to this episode:

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

Feedback in:

Dear Michael,

I hope this email finds you well.

I am writing to you today to seek your guidance on a challenge I’m facing in my trading journey. I am confident in my ability to identify entry points based on my strategy and successfully enter trades. However, my main struggle is with holding onto a trade to capture the majority, or even a significant portion, of a trend. I often find myself exiting too early and missing out on further gains.

I would be extremely grateful for any insights or advice you might have on this matter. I am particularly interested in learning from the experiences of great traders and how they manage their positions to maximize their returns.

Thank you for your time and consideration. I look forward to your response.

Best regards,
Masood

If you only have an entry you don’t have a system. Any of my books would set you on the right path.

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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.