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Ep. 131: Predictions, Dreams, Fantasies with Michael Covel on Trend Following Radio

Predictions, Dreams, Fantasies with Michael Covel on Trend Following Radio
Predictions, Dreams, Fantasies with Michael Covel on Trend Following Radio

Please enjoy my monologue Predictions, Dreams, Fantasies with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

Listen to this episode:

Want to learn more Trend Following? Watch my video here.

Ep. 129: Skepticism and Agnosticism with Michael Covel on Trend Following Radio

Skepticism and Agnosticism with Michael Covel on Trend Following Radio
Skepticism and Agnosticism with Michael Covel on Trend Following Radio

Please enjoy my monologue Skepticism & Agnosticism with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

Listen to this episode:

Want to learn more Trend Following? Watch my video here.

Ep. 126: James Altucher Interview with Michael Covel on Trend Following Radio

James Altucher
James Altucher

My guest today is James Altucher, an American hedge-fund manager, author, podcaster, and entrepreneur who has founded and cofounded over 20 companies. He has published 20 books and is a contributor to publications including The Financial Times, The Wall Street Journal, TechCrunch, and The Huffington Post.

The topic is his book Choose Yourself!

In this episode of Trend Following Radio we discuss:

  • The new book and why all the rules we thought of as normal (“The banks will always finance my house”, “The stock market will always go up”, “The big corporations will always hire me”, “If I have a college degree, there will always be a job for me”) are imaginary
  • Why a good trader trades their own self first, and the importance of choosing yourself and making a consistent inner life
  • The need to become an entrepreneur and artist in today’s climate, and why you might be looking down the barrel of a career in temp staffing if you don’t
  • The collapse of the middle class and 9-5 “jobs” as we know them
  • The importance of doing the un-obvious
  • Why you’re only as valuable as your network
  • The need to exercise your idea muscle
  • Sunk costs and opportunity costs
  • Breaking the cycle of consumerism, buying memories and not buying objects
  • Commitment bias
  • Finding a career at 27, Stan Lee of Marvel Comics, endurance, and the importance of doing something for yourself today
  • David Gilmour of Fiji Water and the benefits of adventure
  • Medication, lifestyle choices, and the necessity of good sleep hygiene
  • The need to be an artist where your life is the canvas

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No Day Trading. Please, No Day Trading

A recent dialogue on Facebook:

Shankar: Does trend following work on intra-day as well?

Covel: No. But why would one want to trade intra-day?

Shankar: Frankly I don’t know…but what I wanted to ask was does it work even on a shorter time frame i.e 5 minute charts. It should work right?

Covel: No. But why would anyone try to trade 5 minute charts? There is no system that trades 5 minute charts. None. Anyone who says that there is… is suspect.

Shankar: Any trading is for generating more profits… is it?

Covel: Day trading is not for more profits.

Shankar: Very surprising…

Covel: It is a fantasy. Find me the track records of the great day traders to match the track records of the great trend followers. Let me save you the research: they don’t exist. Why is that surprising?

Shankar: Lots of strategies have been there. I am talking about an Indian contest. Surprising because lot of people keep talking about it.

Covel: There is nothing special about Indian markets. All markets are the same. Talk about it, yes. Talk. Many people talk about doing drugs. Does their talk force you to want to take drugs too?

Shankar: No.

Covel: Trust, but verify.

Shankar: Ok.

Covel: When you can verify day trading, let me know.

Shankar: Why would trend following not work on smaller time frames?

Covel: Why should they?

Shankar: The philosophy is the same right? There are going to be trends in the shorter time frame as well.

Covel: How is it the same to trade long term trends that exceed a year or longer … and that is the same as a 5 minute bar? I talk about these issues in my books extensively.

Shankar: As long as you are running the profits and cutting the losses.

Covel: Go find the proof for the 5 minute bar trend followers. I will wait!

Shankar: Ideally if the philosophy is the same, it should work on all time frames. Hey this is just a question out of inquisitiveness. I appreciate the work you have done. And let me tell you all traders badly need to know the work you have been doing.

Covel: Ideally? Why?

Shankar: I am talking about from the trend following philosophy point of view, also, if you do the back testing on the shorter time frames, you do get good results.

Covel: You get good results, really? Find me the real proof as asked. I will wait.

More on day trading here and here.


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.

Ep. 124: Variability is the Norm with Michael Covel on Trend Following Radio

Variability is the Norm with Michael Covel on Trend Following Radio
Variability is the Norm with Michael Covel on Trend Following Radio

Please enjoy my monologue Variability Is The Norm with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

Listen to this episode:

Want to learn more Trend Following? Watch my video here.

Nomadic Podcast, Heavy Metal and Yoga Feedback

From Oct 25, 2012:

On a similar note, I’ve basically spent the past 3 years of my life wandering the globe as a vagabond, with a major emphasis on southeast Asia. So I have a lot of knowledge and recommendations for your upcoming trip (which I look forward to following on the blog/podcast). I am also very likely to be in SE Asia starting fairly soon, so it’s possible that our paths will cross. I’m in LA now, for about 2 more weeks. Anyway, I’ve long wanted to reach out and tell you this stuff, though I have no idea why. I hope you didn’t read this and think “this guy’s some kind of crazy stalker,” because I’m not. But the commonalities have definitely contributed to your podcast resonating so strongly with me.

Regards,
Paul

Thanks for the note Paul. Definitely working toward the SE Asia venture and will definitely want your insight soon! Thanks for reaching out.

From Dec 5, 2012:

I’m in Ubud now, for about 10 days. I imagine that when you talk of coming to Bali, you’re probably talking about Ubud. You must know that the Kuta area, where the bombs have gone off, is pretty much 20 year old drunken Aussie tourist hell. Ubud is a great spiritual place, just lacking a beach (which kind of sucks, but it has lots of other attributes that make up for it in the short term.) I’m basically doing 4-6 hours of yoga a day at an awesome studio called Radiantly Alive, which I highly recommend. No need to go to an expensive yoga retreat here. You can create your own for about 1/4 the price and have more flexibility. Given your path in yoga, you’ll love it here. And the food is great too.

PS: I’m reading Tony Iommi’s autobiography right now. It’s pretty boring, as is Tony himself. Ozzy’s was much better. I hope a Dio biography comes out at some point.

Thanks Paul, perhaps once I get to new year and clear through holidays I circle back for some more great insights!

From May 6, 2013:

Michael, I just wanted to follow up with you on a couple of notes I made listening to your podcasts. First, I love how you used the old school version of NIB, with the long slow bass intro, in the podcast with the John Wooden recording. Nothing like drawing it out at the beginning, before it would really be identifiable as Sabbath style music (unless you know the song, of course.) What could go better together than Wooden and Sabbath?

Second, you talked about Lemmy in another podcast. It reminded me of how I saw Motorhead open for Sabbath twice, including once in 1995 in a small club in West Hartford, CT. I was front row center for Sabbath, though with Tony Martin singing, it was only moderately good. But the club itself had two sides. The other side was a really low grade strip club. My buddies and I wandered over there after the show, and it was mostly deserted. The Sabbath guys were sitting up in a balcony area, and Lemmy was down admiring and interacting with the heinous strippers. He was in all his glory. If it wasn’t so funny, I’d have to say it was sad. But Lemmy isn’t picky.

I hope you’ve enjoyed your Asian trip as much as it sounds on the podcasts. I’m at the beach in Thailand now after a month long tantric yoga course in Rishikesh, India (the “Yoga capital of the world”) and then a few weeks in Nepal, trekking in the Himalayas.

I still recommend Ubud, Bali highly for a place to go nuts with yoga, great food, and good looking western yoga chicks from all over the world.

Cheers,
Paul

Thanks Paul! Sounds like I will definitely have to be checking out Ubud!


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.

Ep. 121: Jason Russell Interview with Michael Covel on Trend Following Radio

Jason Russell
Jason Russell

My guest today is Jason Russell, the President and CIO of Acorn Global Investments in Canada. Russell brings a unique perspective to the show with a very clear strategy on how his firm makes money for their clients.

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

  • Russell’s background and how he came to form Acorn Global Investments
  • Russell’s strategy for Acorn and “the baker analogy”
  • The idea of “winners stay, losers go”
  • Showing his investors every position that Russell has
  • How the terms “commodity trading adviser”, “trend follower”, “quantitative trading” don’t exactly describe what many traders do
  • Ed Seykota and the “trading tribe”
  • Letting go of “why” and simply riding out trends
  • Where strategies like Russell’s fit in the context of a portfolio
  • The importance of delivering uncorrelated results to the S&P 500
  • Drawdowns and the psychological effect of going through one alone, uncorrelated to other markets
  • How there’s nothing more important than risk management

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