Collin Seow is author of “The Systematic Trader: How I turned a $250,000 debt into profits through stock trading.” He also is a qualified Chartered Portfolio Manager with a Certified Financial Technician qualification, and a member of MENSA Singapore and Technical Analysts Society Singapore.
Michael and Collin switch discuss the “Singaporean perspective.” What is the Singaporean perspective and what helped lay the foundation for their success? The founding fathers of Singapore set forth strict rules and regulations so people knew what they could and could not do. The system was laid out clear and concise. Citizens knew what their boundaries were down to the last detail. For example, there are rules defined ranging from whether or not you can chew gum to how far trees are allowed to be planted apart from one another.
Collin moves from the Singaporean perspective socially, to their perspective on trading. More traders in Asia seem to be open to the idea of systematic trading. When he back tests a system, he doesn’t just look at making money, he tries to figure out how to filter out the losses. He wants to protect what he has so the returns will take care of themselves. Picking a certain percent that you’re willing to risk on a trade is not necessarily intuitive. Collin also looks at both position trading and swing trading, and adjusts his risk according to trading style. Although there are many different styles, and factors that play into how one will trade, Collin still attributes over 50% of trading success to having the right psychology.
In this episode of Trend Following Radio:
Different types of momentum trading
Position trading vs. swing trading
A sense of entitlement in today’s society
“At the end of the day it isn’t about having the right strategy, it’s about having the right mindset.” – Collin Seow
“If you don’t have an edge, how the hell are you suppose to play the game?” – Michael Covel
Today on Trend Following Radio Michael Covel interviews Jim Rogers. Jim is a famed American investor based in Singapore. He was co-founder of the Quantum Fund, and has authored numerous books. Today’s conversation is geared toward the central banking system and the direction Michael and Jim think the world’s economy is headed.
Michael starts the podcast off talking about negative interest rates and if that is a possibility in the U.S. Jim brings up a study published in 2007 that said, “We have the Federal Reserve, we have 1,000 of the most brilliant economists in the world how can we be wrong? How can people say that we are wrong?” Jim says that for the last 30 years the Fed has done just that. They have gotten just about everything wrong. Janet Yellen has been getting everything wrong since before she was even head of the Fed. She blames her blunders on the market being wrong or the public being wrong. According to Jim, every head of the Fed has been an academic and political hack.
Michael posits, “Everyone should be able to imagine another stock crash, we have had enough of them.” Jim says that the debt is staggering right now so when we have a crash it is going to be utter chaos. When we have extreme economic problems a war usually follows as well as someone coming in on a white horse to save the day. That white horse person will also cause more debt and make things even worse. This is the first time in history that government is actually out to destroy the people who have saved and set away for retirement. The middle and saving class has been destroyed before, but that was because of war or inflation. Jim says that it is mind boggling that the government’s solution to clearing up debt is to create more debt.
Next, Michael asks, “How do you see China right now?” Jim says that when they had their big market crash they chose to invest in the future with money they had saved. In America, we did the opposite. We chose to bail out the bureaucrats and make sure the rich didn’t go poor. The European and Japanese central banks have come out saying that they will practice unlimited QE funding. They will print unlimited amounts of money to solve their economic problems. Most do not question this because most people have no idea who or want the central bank is.
Lastly, Michael asks Jim what the best way is to prepare for potential problems that may unfold in the future. Jim says the first thing is to not listen to the news or what you may read on the internet. Stay with what you know and if you don’t think you know something, do nothing..
In this episode of Trend Following Radio:
Negative interest rates
Central banking systems
The impact of unintended consequences
Preparing for the future
“For the last 30 years look at who we have had down there [as the head of the Federal Reserve]. They have all been academic and political hacks.” – Jim Rogers
Having just recently finished ‘The Complete Turtle Trader’, I must commend you on a very informative (& readable) analysis on the development, success & continued relevance of the original Turtle program. For guide, I am based in Singapore as part of [Name] derivative trading team. As you spend a fair bit of time in the region, it would be a pleasure to meet for lunch (or dinner) on your next stay here.
We are still working on dates for a Singapore trend following conference. Also, if you have any suggestions for podcast guests, send them our way:
Mike, I would definitely be interested in learning more about Trend Following Conference in Asia dates, time and agenda. Also, I think a great guest would be Tom Dorsey from Dorsey Wright & Associates. He started his career as a stock broker with Merrill back in the early 70’s, ran an options dept then started his own company back in 1987. Tom has traveled the world and has met lots of great people and has incredible stories. His company provides guidance for advisers, institutions, hedge funds around the world. Based on Point & Figure applications and Relative Strength (all related to Trend Following).
Keep up the great work! Thanks for all of the inspiration!!
Thanks. I will email Tom and Singapore news to follow.
Michael, I’m a corn farmer in NE Colorado. I really appreciate your blog and the interviews. You have created a great interest in SE Asia for me. I may come see you in Singapore for your seminar. I want to see [the] beautiful women on scooters!
Yes, I can understand. Corn farming is noble and perhaps lucrative, but you are right about beauty in that part of the world. More soon on Trend Following event in Singapore.
Feedback in on my proposed 2014 Singapore conference:
Mr. Covel, please make this conference happen. My wife and I will be there. If you get Jimmy Rogers to speak I’ll buy you a ridiculously expensive bottle of bubbly. Thank you for your podcasts and your blog. I hope to meet you in my favorite place outside the Promised Land. (Texas)