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Go Blame It On The Weather… Why Not?

Calling out the idiocy of of news:

This morning’s catastrophic drop in the National Association of Home Builders sentiment index has rapidly been spun as due to the weather… of course, makes perfect sense, right? What would happen if these drops were actually real fundamentals? If the status quo, the “common knowledge” was shown to be full of shit (once again). Well, riddle us this Batman… if weather was to blame, then why did the “West” region plunge the most? In fact, why did The West plunge the most on record? Too much sunny dry weather not good for sales? In fact, even the entirely indpendent provider of real estate research Trulia said that weather is not to blame…But sure, as opposed to face up to reality, keep blaming the weather…

See entire post with graphs here. Reason #234 to consider trend following.


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Weed Out the Noise in 2014: Motley Fool Fools

Feedback in:

Happy New Year Michael, I just got an email from the marketing department of the Motley Fool with the Subject Line: (I kid you not!)

“Start 2014 with a 92.6306% chance to beat the market”

Laughing too hard to continue…

Francois Theberge

After receiving the above email I asked Francois to send me the article the headline was designed for:

Above mentioned link

Mark Brooks
Chief Technology Officer
The Motley Fool

Wow. Awesome bullshit.


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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.

Universities Don’t Help With Trend Trading

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.

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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.

Making Money on the Desert Island

Some news can be interesting and entertaining. The majority of news completely wastes your time. But all news does have something in common… It will not help with your trading. Consider the following:

Mike, did you see this? I know you do not like following the news, and I heed your comments you made previously on “it’s in the price”, but if markets such as currencies are zero sum games, if certain parties are colluding to rip money out of the market illegally, then doesn’t this mean that the markets are not zero sum, particularly when adding to the cost of transacting?

Kind regards,
Nick

I don’t understand what this has to do with trading price? Imagine you are on a desert island and you have no news…except price data. Now what? You can make money on that desert island.


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.

Parabolic Moves and Trend Following

Follow the trend to the top and get out as it is falling back down. Predicting the top is a fool’s errand. Feedback in:

James: Hi Michael, hope you are well and Asia is treating you well. You did a podcast with someone (can’t recall his name) and they mentioned taking profits in parabolic moves. Not much help I know but it is all I have. I was wondering if you could recall who it was or if you have any info for taking profits in these types of moves. More than happy to let normal moves roll over and let my trailing stop take me out but some of these parabolic moves give back too much. It is the one part where I believe I can add that extra % to my trading but have not been able to find any trading rules that adds any value. Any help [is] much appreciated. Thanks.

Covel: Don’t recall off top of my head! All good trend following trends tend to be parabolic and all are generally handled the same way. You get out after the peak, not before. I help clients more in my training/systems, but you will also see more thoughts across my books.

James: Thanks for the reply. I know I did not give you much to go on. Will keep looking.


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.

College: A Debt Cyclone Engineered by the Loving State

Sure, college is good for some, but many entering “the system” just get ripped off. This excerpt mirrors many of my views:

“Since 1985, college tuition has increased at nearly 500 times the rate of inflation. (See: College tuition has jumped by 500% since 1985) Can you imagine the same jump in any other area? Food, housing, medicine, energy? If everything we need to live increased in price at the same rate as college tuition, there would be a national riot in about 10 minutes. So what really happened in the marketplace to allow college to get so expensive? Is it really all because Republicans want to raise the rates on student loans?

Think about it. Universities get to decide how much money to charge their students. Likewise, parents and students decide if they can afford to pay it. It’s a pretty simple proposition. But when the government suddenly makes hundreds of billions of dollars in student loans readily available — under the popular (and voter-friendly) theory that “everyone should go to college” — we see an unintended consequence. We see colleges suddenly motivated to charge more money. A lot more. And so they embark on their own PR campaigns to boost enrollment. They hire ad agencies and publicists and lobbyists and go about the business of persuading people to “invest in their future.” And most importantly, they provide an admissions department to help arrange for an affordable student loan. This is what’s been happening for the last 40 years.

If blame is your thing, there’s plenty to go around. Republicans and Democrats have both allowed a trillion dollars of public money to flow freely between students and colleges with no real accountability for the results. And millions of well-intended parents and guidance counselors are still pushing the idea that a four-year degree is the only viable path to happiness. This in spite of the fact that the vast majority of available jobs no longer require a diploma — they require the willingness to learn a useful skill. And that kind of training does not demand the type of massive borrowing that has put college graduates a trillion dollars in the hole.

To be clear, I’m not anti-college; I’m anti-debt. If you can afford it, by all means go for it. But I reject the idea that a four-year school is the best path for the most people. I went on Piers Morgan Live because I have a scholarship fund that trains people for jobs that actually exist, while rewarding the kind of work ethic I think we need to encourage. I want to spread the word.”

Shout to Cullen Roche at www.pragcap.com for the find.


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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.

This May Be the Holiest of Holy Grails

Money making advice is apparently woven throughout the bible:

Most people know Sean Hyman from his regular appearances on Fox Business, CNBC, and Bloomberg Television, but what they don’t know is that Sean is a former pastor, and that his secret to investing is woven within the Bible. Perhaps that can explain why, despite his uncanny ability to predict precise moves in the stock market, Sean is often laughed at for his unique stance on investing. For example, a few months ago Sean appeared on Bloomberg Television. At that time, Best Buy (BBY) was dropping to all-time lows of $16 a share. Sean predicted the stock could go down to $11 a share, and would then quickly rebound to $25 per share, and after that would rally to $40 per share over the next year.

Another commentator on the show actually mocked Sean for his stance, saying “$40 on Best Buy? If that’s the case Apple (AAPL) is going to $1,500. That’s the most ridiculous thing I have ever heard!” (Editor’s Note: At the time, Apple was trading at $650 per share).

Within a few weeks, Sean would receive the last laugh. Best Buy dropped down to $11.20 a share and has since rebounded to $30 a share, continuing its path to $40… exactly as Sean predicted. (Ironically, Apple has dropped down to about $400 per share).

During a recent private dinner with Sean, once he’d blessed the food, I wasted no time asking him what his secret is for investing so successfully. I expected Sean to say that it was his years of experience at Charles Schwab or perhaps one of the complicated algorithms he uses for timing the stock market. So when Sean responded that his secret to investing was the Bible, I was thoroughly shocked.

Yes, I knew Sean was a Christian (anyone who spends more than 1 minute with him will pick that up!). However, people usually keep their faith separate from things like… investing. But not Sean. For Sean, the Bible is his FOUNDATION for investing. He explained to me how there is actually a “Biblical Money Code” woven into Scripture.

Sean says it is this Biblical Money Code that took him from making a mere $15,000 a year to now giving away up to $50,000 a year. Sean also credits this code with helping him turn his father’s $40,000 retirement account into $396,000.

Certain investment titans, Sean says, such as Warren Buffett and John Templeton, have already used this code to amass billions. What Sean had to say impressed me so much that I asked him to put a presentation together that reveals how anyone could use this “Biblical Money Code.” (Click here to watch it now)

I’ve personally watched this presentation several times and it is already spreading virally. During the video, Sean uses the teachings of King Solomon, Jesus of Nazareth, and the Apostle Paul to show how anyone can get out of debt… make sound investments… and morally build substantial wealth.

Sean even reveals a “debilitating ‘financial sin’ that blinds many… and could be costing you up to 41% of your life savings at this very moment.” What’s so deceiving about this sin is how innocent and safe it appears at first. And at the end, he finishes up with his “12-12-12 plan for investing.” This is a simple step-by-step plan to go from being a saver, to an investor, to a philanthropist.

If you buy into Bible investing you deserve to lose every last penny to your name.


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.