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Category: Trend Following

Ep. 200: Tom Basso Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Tom Basso
Tom Basso

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My guest today is Tom Basso, the trader most famously known as “Mr. Serenity” in Jack Schwager’s “New Market Wizards”. Basso, now retired, was a stock and commodities trader who was president and founder of Trendstat Capital Management. He is the author of two books, “Panic-Proof Investing” and “The Frustrated Investor”. Basso became a registered investment advisor in 1980, a registered commodities advisor in 1984, and was elected to the board of the National Futures Association in 1998.

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

  • Location independence
  • Making sure trading doesn’t take up your entire life
  • Stoicism
  • Trend following in the emotional arena
  • Mental exercises
  • The psychology of trend following
  • The “observer self”
  • The mental aspects of success
  • The importance of being able to lose small amounts of money
  • Why trend following does so well when the black swans hit
  • Basso’s daily routine and the importance of routine in daily life. Covel and Basso also go through listener questions such as whether Basso would make the same trading decisions that he did from the start
  • Money management v. trading
  • Tinkering with current systems
  • Knowing when it’s a regular drawdown v. something really going the wrong way
  • Whether Basso is a one-system kind of guy v. multiple systems

In this episode of Trend Following Radio:

  • How to use mental exercises to improve yourself as a trader
  • Why the tolerance for losing small amounts of money can make you almost invincible
  • Tom’s daily trading routine: how to ensure you don’t spend the whole day making trading decisions
  • Why understanding strategic planning is key to being a successful trader
  • Trading for clients vs. trading for yourself, and the regulations that go along with that
  • Understanding the difference between a normal draw down vs. something really going wrong
  • Separating facts from opinions, and why it’s important in trend following trading

Listen to this episode:

Jump in!

Take Advantage of the Trend Following DVD

Posted on by Michael Covel

Feedback in:

Hi Michael, received your DVD in the mail and am enjoying the videos and podcasts. Look forward to taking part in your program later in the year once I’ve gotten through your resource list.

Brodie

Great!

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.

No More Bloomberg Radio!

Posted on by Michael Covel

Feedback in:

Hi Michael, Just thought I would drop you a note to say a big thank you for all the work you and your team are doing with the podcasts, not to mention your books as well. I stumbled upon your work whilst searching for information on Nick Radge who I have been learning from over the last 12 months, and listened to your interviews with him and have been hooked ever since.

I have been attempting to find my feet in the trading world for the last 4 years and have learned more in the last 12 months from Nick and yourself than I have since I started my journey. I used to listen to Bloomberg Radio (don’t judge me) and was really struggling to find relevant information that cuts through the bullshit and gets to the essence of what we need to know as new traders, thankfully I have found it.

The other comment I would like to ad in reference to your podcasts is the variety of people and the topics you cover is wonderful. I am going back into business in the near future and love hearing entrepreneurial tales and words of wisdom form those that have succeeded. Keep up the great work, you’re a true inspiration.

Cheers,
Troy Johnston

Welcome Troy!

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.

Making It Happen in 2014

Posted on by Michael Covel

Feedback in:

Dear Michael, I have recently discovered your work via your website and the Trend Following Bible. Wow! So many lightening bolts! It’s as if I’ve arrived at the shores of a New World. I’m in the process of learning, absorbing and immersing myself into the world of trend following and my mind is in over-drive thinking of how I can create a life and a living in trend following trading. I simply wanted to say thank you for the work you have done, and are doing, to educate and inform people about this fascinating field. Genuine life altering experiences are rare but this has been one for me, for this I am truly grateful. Here’s to a thriving 2014 and making it happen.

Best regards,
Alex
Maidenhead
England

Thanks Alex.

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.

The Schooling of Trend Following

Posted on by Michael Covel

Feedback in:

Dear Mr. Covel, I am a First-Year MBA student at the University of Virginia and I am very interested in trading and trend-following. I enjoy your books and your podcast very much and learn a great deal from them. Ever since reading Trend Following four years ago, I have researched and developed trend-following systems and I currently trade a trend-following system for my personal account. After business school, I would love to conduct research for a quantitative investment firm while apprenticing under a fund manager/system developer. I would love to speak with you about what I could do to realize this ambition. Would you be available for a 30-minute phone conversation on January 9th at 11 a.m.? If that time does not suit you, please feel free to suggest another.

Thanks and I hope to hear from you!

All the best,
Jake

Once I get back to Asia in February we can schedule a call.

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.

Push Hard if You Want It!

Posted on by Michael Covel

If you want to meet anyone bad enough you will meet them. Recent feedback in:

TJ: Ever met Michael Marcus? How do you get to meet a guy like that? At least he is in So Cal and not Chicago!

Covel: Austin, Texas I thought. Meet? If you want it bad enough you will.

TJ: Humph, he must have moved. Yes, we can have anything we want if we are willing to pay the price.

I doubt he will meet him.

Note: I talk about these issues across my podcast, books and blog. Also, read Linchpin.

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.

Universities Don’t Help With Trend Trading

Posted on by Michael Covel

Feedback:

Hi Michael, How have you been enjoying Saigon so far? I’m a new trader and I have been trend trading stocks and FX for a few months now. My style of trading is somewhat like Jon Boorman, who was on one of your podcasts. Recently, I have been thinking about getting a Master degree in Financial Engineering since I wanted to learn how to make my trading more mechanical, along with how to better control risk & position sizing. Money matters aside, do you think it’s worth it to go to graduate school for this? Or is there a better way to learn these specific skills? Also, may I ask how you came up with your trading system? Was it a solo work or did you need a programmer to work on it? Thanks a bunch! And have a nice day!

There is no formal school to help you become a trend trader. Do that (formal school) and you only delay progress. You can either code yourself or hire. Done both ways and there is no right or only way. My books, other books I recommend, content on my websites, podcast and my training at trendfollowing.com/products all help people get there quicker versus formal education.

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.