Please enjoy my monologue Doing More With Less with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
Want to learn more Trend Following? Watch my video here.
Davie Tate III writes:
Hey Mike. Davie Tate here. I was thinking about your recent podcast where you talked about how the sharks were posting Bill Dunn’s worst years to demonstrate the failure of trading. It reminded me of the recent articles on John Paulson. You may have read that his gold fund is doing horribly this year. Down 65%. Just like with Bill Dunn, people who don’t understand trading are just salivating over this demonstration of the “failure of trading”. The fund only represents 2% of Paulson’s funds. If this fund operates totally independently of his others funds then I might be inclined to agree with some of the criticism Mike. I can’t understand how any professional trader of Paulson’s caliber could allow his fund to lose 65% of assets. Also, I can’t understand why any professional trader could have looked at a gold chart for the past few years and decide to go long which is the only way that I can imagine that he could be down 65%. If he does incorporate counter trending strategies and was long then I don’t understand why his stops didn’t prevent such a massive loss. On the other hand Mike, if this fund does not operate totally independent, but operates as part of all of his assets, then my view would be totally different. A 2% investment of total funds under management while a bit high, is not a totally unreasonable amount for a professional to risk on a trade. Furthermore if that is the case, just think about it Mike. A 65% unrealized loss on a particular trade means you’re still in the trade. We are actually willing to risk 100% of the 1% or so that we risk on each trade. I don’t think some people realize that. If you have $100,000 trading account and you risk $1000, 65% down in that trade means you are still in the trade. The trade doesn’t end until you either get stopped at a 100% loss of the $1,000 or you take profits of 2:1 or 3:1 on that trade. Some people don’t seem to realize that about trading.
65% loss in one market is not trend following. Where is the cutting of loss? Maybe his strategy will work, but it’s not loss cutting. Dunn’s DD was from taking many small losses across many markets. Those add up to a DD. No one drop on one market. Plus, there really can’t be a TF fund on one market alone. No diversification.
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My guest today is Alpesh Patel, a hedge fund manager, Financial Times columnist and Bloomberg TV presenter.
The topic is his book How to Win at Spread Betting: An Analysis of Why Some People Win at Spread Betting and Some Lose.
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Hi Mike. Thank you for the latest newsletter and for introducing me to Asacker and Watts. The podcast with Tom Asacker is superb. The final part, listening to Alan Watts moved me to tears, what he said is so true and said so eloquently. I have two daughters and hope to convince them to work for themselves when they get through their education. I hope they will listen to your podcast at some point – they’re aged 11 and 13. Your own story of itself is inspirational and proof that belief is crucial. Incidentally, JOB, stands for; JUST OVER BROKE! I heard that many years ago, and how true it is. Which ever part of the world you’re in, have a good day.
Best wishes,
Rob
Thanks!
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.
Please enjoy my monologue Trading Places & Nature v. Nurture with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
Want to learn more Trend Following? Watch my video here.
My guest today is Tom Asacker, an artist, writer, inventor, and philosopher. He writes, teaches, and speaks about radically new practices and ideas for success in times of uncertainty and change.
The topic is his book The Business of Belief: How the World’s Best Marketers, Designers, Salespeople, Coaches, Fundraisers, Educators, Entrepreneurs, and Other Leaders Get Us To Believe.
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Check out this guest post by Robert Kramer on How our beliefs can affect our reactions to truth, facts, and lies.
My guest today is Steve Burns. Burns has been investing and trading in the stock market successfully for many years. He is the author of seventeen books about the stock market. He is one of the top reviewers for books about trading and investing, having read and reviewed several hundred books.
The topic is trading.
In this episode of Trend Following Radio we discuss:
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