Hi Michael, I’m wondering if you have any general advice for someone striving to build some secondary income sources.
The reason I’m asking you is because you’ve built up your own website, written your own books and built up your own website.
My vision is to become a trend following trader, having a website and write some books. The trend following part is actually the easy bit since it only takes capital and a back-tested strategy. The hard part is the income source that could finance continuous saving.
So on the subject of building up some kind of platform, which you obviously are a master at, do you have any general advice? It can be hard to know where to start before putting in all the hours.
Become an entrepreneur. Read Linchpin by Seth Godin.
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,
Once I get back to Asia in February we can schedule a call.
For every ten traders that try their luck at day trading nine of them will go broke. It is just the way the game works. Famed trader Richard Dennis had this to say about day trading:
If I’m buying and selling in the same day, it’s always to take a loss. I haven’t made a profit on a day-trade in five years.
Having a plan and sticking with it is also something Dennis stood by in his day trading advice:
“When you have a position, you put it on for a reason, and you’ve got to keep it until the reason no longer exists. Don’t take profits just for the sake of taking profits. You have to have a strategy to trade, know how it works and follow through on it.”
Without a solid plan, and the nerves to stick with it, the markets will exploit you, take advantage of you, and then in a sad quiet fashion…. leave you for broke on the side of the road.