I’m a huge fan of your podcasts and have finished your books Trend Following, Little Book of Trading and Trend Commandments. I also listen to your podcast pretty religiously and am working through your early episodes with the fund managers. I’m currently in medical school living off loans so I use the public library for books whenever possible. I’m using just 50 day and 200 day moving averages and reading some of [name] works now. Do you have any advice on sources and ideas for trading systems and rules? Or any advice on the application of trend following.
Here is one way to start and another way to start.
Mike. Are you ever returning to San Diego? How is yoga and world travels? Here is a quote from a guy that has sold millions of books and truly just about sums up the masses and the psychology of losing: “If you made money in 2008, you did something wrong” from Ben Stein. Ok, thought you would get a kick out of it.
I used that quote to start my Little Book of Trading released summer 2011.
I’m in Asia now and the yoga is great!
Hello Michael, thanks for accepting my friend inquiry. First, I want to say that I am a big fan of your podcast and interviews. Really great stuff. About myself? I have traded for 5 years, but have not traded profitably. I think my largest hurdle is not holding onto the winners. I do not give my entries enough room. Therefore I keep my losers very short, but very often see the position run after stopped out. In a nutshell my strategy is to move the stop to the entry point as soon as the position has a little bit of room. But so many times the position turns around just to touch my stop and then move on. Do you have any advice for me? Would you say that’s just risk management and part of the business? Because I think I miss too many good trades with this strategy. Thanks a lot in advance and have a nice time in Asia.
My first advice would be to read one of my books. Not a dodge to your question, but my books are filled with the necessary detail not easily put in one email response.