Critical Thinking with Michael Covel on Trend Following Radio
Please enjoy my monologue Critical Thinking the Trend Following Way with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
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Mr. Covel, I just ordered your free DVD. Have you written a book that goes over your early beginnings in trading, your early thought processes, your early tinkering and experimenting and the steps you went through to that got you to your goals? I am so overwhelmed in my goal of being a successful trader I feel I need to start from the beginning. Just this weekend finished a ‘Rich Dad’ seminar and I am one of quite a few that did not ‘buy in’ right away. Not taking anything away from his program, it was just too much too quick to think about and do and I decided to wait awhile and do more of my own research. We are going to start an investment club here locally. I am tired of thinking “The Machine” is going to take care of me. I have committed to taking my own retirement funds to a new level. And the good thing is I still have a little time (I am 55). Let me know if you have written the above, or something close. Thanks a lot.
Tom G.
Colorado Springs, CO
Tom, all 4 of my books have bits and pieces of a story in them. See here.
Kacher is the co-founder of TriQuantum Technologies, holding company for KJA wherein he is lead portfolio manager. Dr. Kacher’s metrics have called every major top & bottom in bitcoin since 2011 to within a few weeks of the top. He was up in 2018 vs the average performing crypto hedge fund at -54% (PwC).
Morales was personally recruited by Bill O’Neil himself to join William O’Neil + Company, Inc. as a Vice -President and Manager of the Institutional Services Division, responsible for advising over 600 institutional investor clients, and as an internal portfolio manager responsible for managing a portion of the firm’s proprietary, internal assets. From 1997 to 2005 he achieved a return of approximately 2100% in his portion of the firm’s proprietary account. In 2004 he was named Chief Market Strategist at William O’Neil + Company, Inc.
The topic is their book In The Trading Cockpit with the O’Neil Disciples: Strategies that Made Us 18,000% in the Stock Market.
In this episode of Trend Following Radio we discuss:
The “O.W.L.” ethos, and the story behind it
Reversion to the mean mentality, and how it can often be the kiss of death for traders and investors
Trading psychology, the idea that “you must lose to win”, how the least important statistic is your percentage of gains v. losses in your trading account
Dealing with emotionalism and why clients often want to hear something that will make them feel better
Teaching people to let go of the news and simply watch the price action
Why people think that “this time is different”, put their trust in the central economy, and why trend following will survive into the future
Understanding that investing is always a process of changing along the way
What mental clutter in the way of fears, biases, concerns and more can build up in the mind and get in the way of clear and decisive decision-making
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My guest today is Tushar Chande, a trader, author,co-founder and head of research at Rho Asset Management in Switzerland. Chande has had a long and distinguished career in technical analysis; he brings a unique perspective on how to look at the markets as a trend following trader. He came to America and earned his Ph.D. in metallurgical engineering from the University of Illinois in 1984.
The topic is Trend Following.
In this episode of Trend Following Radio we discuss:
Early influences, and chart the journey from his days as an engineering student to his accomplishments as a systematic trend following trader
Analogy between sports and trading, how the best sportsmen rely on having a stable and predictable environment (unlike the markets)
Evaluating performance within the context of the market
Discretionary trading v. systematic trading
Learning through “trial and terror”
The Rho Trend Barometer and the ability to quantify the environment
The problem of indexes
The Sharpe ratio
The importance of market movement to trend following trading
“The black box disease”
Trusting your system
Cognitive biases
The benefit of the “black swan” and outlier events and why these events are so beneficial to a trend following system
Whether “one-hundred Ph.D.’s are better than one”
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Cheat Sheet for Trading Success with Michael Covel on Trend Following Radio
Please enjoy my monologue The Cheat Sheet with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
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The Six Inches Between Your Ears with Michael Covel on Trend Following Radio
Please enjoy my monologue The Six Inches Between Your Ears with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
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My guest today is Richard Weissman, a professional trader with over 25 years of experience and an author. Weissman considers himself a “swing trader”. He is one of the world’s foremost authorities and thought leaders in the fields of derivatives, risk management and technical analysis.
The topic is his book Trade Like a Casino: Find Your Edge, Manage Risk, and Win Like the House.
In this episode of Trend Following Radio we discuss:
Weissman’s path from how he started trading with his father in 1987 to how he made his way to where he is today
Background to Weissman naming his book
The influence of Jack Schwager’s work
Risk management
Positive expectancy
How Weissman defines trends and signs of strength
The idea of “don’t anticipate, just participate”
Positive expectancy and the probability skew
The connection between table limits and risk management
How there are no truly “safe investments”
Some tools that Weissman has used to influence his own trading psychology and smooth out the emotional highs and lows
Not letting a high price stop you from buying, and not letting a low price stop you from selling
Weissman’s concept of “the opaque urn”
The three things you can guarantee
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