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Curiosity and Strong Passion for Trend Following

Feedback in:

Mr. Covel,

My name is [Name]. I wanted to send you an email saying thank you for all of your publications about trend trading. I started trading when I was 15 based on all curiosity and now has grown into a strong passion. I’m 23 years old and have followed your work for 3 years now and now drastically increased my returns but also my view point on the market.

After the fund I worked at sold its assets, I was laid off. Once that happened I went through your books again and it has only kept me more focused on my goals of running my own fund one day. Your work is very appreciated and anyone I know that trades or wants to get into trading, I forward them to your website and to all the books and podcasts.

Thank you Mr. Covel.

Best,
[Name]

You are welcome! As you know Curiosity drives Trend Following.

Trend Following Passion is Contagious

Feedback in:

I [wish] I had read your book many years earlier! And your profiling of the long term track records of the some of the big practitioners inspires confidence and this has been borne out [in] academic studies [too]. Although I do not have the time to do trend following personally being a busy physician, I am beginning to deploy monies in managed futures especially because it offers a favorable tax structure. I have been an investor in hedge funds which have generated large short term gains leading to a heavy tax burden over the years.

I am using your resources to research many of the managers with good track records. Do you have any suggestions as to your favorites? I am looking for managers that offer leverage in addition to their standard program. I am currently invested in QIM which has 3x leverage and with Abraham Trading which offers 2x leverage.

Last, your passion is contagious and keep up your good work.

I don’t give recommendations on pro traders, but thanks for the nice words. I will try to keep it all going straight ahead!

Ep. 356: Talk About The Passion with Michael Covel on Trend Following Radio

Talk About The Passion with Michael Covel on Trend Following Radio
Talk About The Passion with Michael Covel on Trend Following Radio

Michel Covel offers a take about passion — the critical element of your success. An excerpt from the recent Birdman film and comments from Pink Floyd’s Roger Waters help make the case. In Birdman the Michael Keaton character approaches a critic in a dive bar. Everyone is afraid to approach the critic, the fake gatekeeper. Keaton shows the passion. Are you afraid of the gatekeeper? Great. You have already lost. Next, Roger Waters talking about the classic song Brain Damage from the Dark Side of the Moon reveals his motivation, his passion. “Got to keep the loonies on the path.” It doesn’t matter your endeavor, trading, investing, entrepreneur–if passion is missing you are the walking dead, already 2 steps behind. The good news? Passion can be turned on instantly. It is in your power.

Listen to this episode:

Ep. 184: Cal Newport Interview with Michael Covel on Trend Following Radio

Cal Newport
Cal Newport

Michael Covel interviews Cal Newport. Newport writes on a really interesting subject: Passion (mission critical to trading). You hear it all the time: chase your passion, find your passion. But Newport comes at it from a different perspective, similar to Covel’s experiences–passion does not come first, but rather developing top skill comes first. Newport and Covel also discuss Alan Watts; why following your passion isn’t such a great idea from Newport’s perspective; the notion of deliberate practice and the 10000 hour rule, falling back on simplistic strategies that fail; passion following success as the true gauge; misconceptions about passion; thinking of passion as a side-effect of running your career in the right way; overcoming difficulty as a necessary step in the process; the work and analysis Newport has done looking at top chess players; the systematic aspect of gaining skill and its ties to passion; and anxiety and failure. Cal Newport can be found at calnewport.com.

Listen to this episode:

Going The Extra Mile and Trend Following

Do you really want to be in a box with millions of traders and investors with the same training, technique and style (i.e. fundamentals, forecasts, buy and hold, talking heads, etc.)? Richard Dennis danced to a different beat and his creation of the Turtles landed him in the hall of fame. Dennis relayed one of his quirks that helped set him apart:

“I used to go to bed with a book of charts,and just flip through them before I went to sleep. I wasn’t trying to analyze or interpret them, just retain them so that my mind could work on them while I slept.”

Who knows if this exercise worked? What matters is that he was so fired up about being great and forever improving, that he was OK with experimenting and trying out new new things. What will you do differently today? Ludwig von Mises nailed it:

“The class of those who have the ability to think their own thoughts is separated by an unbridgeable gulf from the class of those who cannot.”

True that.

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