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Tag: psychology

Ep. 378: Embracing Failure with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Embracing Failure with Michael Covel on Trend Following Radio
Embracing Failure with Michael Covel on Trend Following Radio

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

In this episode of Trend Following Radio:

  • Understanding that success requires failure
  • Seeing past investment myths
  • Recognizing that no risk means no profits
  • Understanding that there’s no such thing as a perfect strategy
  • Shattering the notion that someone will always take care of you
  • Accepting that there are no guarantees

“I’ve failed over and over and over again in my life. And that is why I succeed.” – Michael Jordan

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Ep. 377: Annie Duke Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Annie Duke
Annie Duke

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My guest today is Annie Duke, an author, corporate speaker, and consultant in the decision-making space. As a former professional poker player, Annie won more than $4 million in tournament poker before retiring from the game in 2012. Prior to becoming a professional player, Annie was awarded a National Science Foundation Fellowship to study Cognitive Psychology at the University of Pennsylvania. Annie is the co-founder of The Alliance for Decision Education, a non-profit whose mission is to improve lives by empowering students through decision skills education. She is also a member of the National Board of After-School All-Stars and the Board of Directors of the Franklin Institute.

The topic is trading and gambling.

In this episode of Trend Following Radio we discuss:

  • Focusing on the process instead of the outcome
  • Understanding that it’s about your return, not you winning percentage
  • Recognizing that in investing, consistency is unnatural
  • Thinking probabilistically
  • Maximizing your expectancy
  • Understanding that a loss doesn’t necessarily reflect bad thinking

“When you focus on outcome over process you actually reduce innovation in your company.” – Annie Duke

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Ep. 376: Overcoming Bias with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Overcoming Bias with Michael Covel on Trend Following Radio
Overcoming Bias with Michael Covel on Trend Following Radio

Subscribe to Trend Following Radio on iTunes

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

In this episode of Trend Following Radio:

  • The use and misuse of statistics
  • Using skepticism to your advantage
  • The advantages of algorithmic trading
  • Leda Braga on why ‘Black Box’ isn’t a fair term
  • Daniel Dennett’s simplifications of algorithms and computing
  • Trend following as simple agnostic rules that can easily be passed to a computer
  • Efficient market theory failure during surprises

“You want to be a contrarian. You want to be on the other side of the coin. Don’t be with everyone. Stand to the side. That’s where the opportunity is…” – Michael Covel

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Listen to this episode:

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

Get the foundation to making money in up, down and *surprise markets on the Trend Following mailing list.

Ep. 375: Mark Sleeman Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Mark Sleeman
Mark Sleeman

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My guest today is Mark Sleeman, the managing director and founder of M.S. Capital Management Limited (“MS”). Mark lives in Auckland, New Zealand and holds an honours degree in Mechanical Engineering (1985) from Auckland university. With over 30 years of trading and research, Mark has extensive experience in trading system design and implementation. Mark is registered with the Commodity Futures Trading Commission and is a member of the National Futures Association, as the principal and associated person of MS.

The topic is Trend Following.

In this episode of Trend Following Radio:

  • The fallacy of “buy low, sell high”
  • The psychology of trading
  • Keeping your losses small
  • The importance of maintaining a life
  • Focusing on the strategy, not the instrument
  • Understanding that patience has to be learned

“You’ve gotta be robust because you’re gonna see good markets and you’re gonna see bad markets. I’ve certainly seen both, and expect to see more of both.” – Mark Sleeman

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Ep. 373: Lasse Pedersen interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Lasse Pedersen
Lasse Pedersen

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My guest today is Lasse Pedersen, a finance professor at Copenhagen Business School, principal at AQR Capital Management, and author of the new book “Efficiently Inefficient”. Pedersen earned his Ph.D. in finance from Stanford University and has over a decade of experience in the industry.

The topic is Trend Following.

In this episode of Trend Following Radio:

  • Discretionary vs. quantitative trading
  • The importance of sticking to your financial plan
  • The various investment styles of the successful
  • How reflexivity affects market prices
  • Backtesting to identify effective investment strategy
  • The role of hedge funds

“I think that good quant investment managers can really be thought of as financial economists who’ve codified their beliefs into a repeatable process. They are distinguished by their diversification, sticking to their process with discipline, and the ability to engineer portfolio characteristics.” – Cliff Asness

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Ep. 369: Market Predictability with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Market Predictability with Michael Covel on Trend Following Radio
Market Predictability with Michael Covel on Trend Following Radio

Subscribe to Trend Following Radio on iTunes

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

In this episode of Trend Following Radio:

  • Recognizing when you are being misled by the experts
  • What to look for in trend analysis and what to be wary of
  • Considering bubbles and other unpredictable global factors in the markets
  • Finding an objective approach to investing based on quantifiable information
  • Considering timeless human investment psychology elements
  • Making investment decisions without being blinded by rigid economic processes or political ideologies

“It’s mind numbing to study financial history, because it is so repetitive: we do the exact same things over and over. We have followed this pattern in every major bubble, starting with the coin mania in the Roman empire.” – John Galbraith

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

Get the foundation to making money in up, down and *surprise markets on the Trend Following mailing list.

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Ep. 365: Chris Clarke Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Chris Clarke
Chris Clarke

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My guest today is Chris Clarke, ex-Goldman Sachs executive director and founder of Lawrence Clarke Investment Management. Clarke has been developing trading systems for decades.

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

  • Trusting the system once you choose it
  • Being prepared to trade no matter which way the markets go
  • The importance of edge, and why gamblers lose
  • Looking at the math behind trading strategies
  • Understanding “market truths”
  • Drawdowns vs. risks

“The desire to maximize the number of winning trades (or minimize the number of losing trades) works against the trader. The success rate of trades is the least important performance statistic and may even be inversely related to performance.” – William Eckhardt

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