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Trend Following Audio Books: The New Way to Drive

Feedback in:

Hello Mr. Covel:

My name is [Name], from Toronto Canada. I wanted to thank you for writing your books on trend following and mainly for making audio book versions. I spend a lot of time driving and find the audio versions outstanding. I start “friend following” on a road trip from Toronto to Chicago. I wanted to continue driving just so I didn’t have to stop listening. I have now started reading The Complete TurtleTrader, and am hungry for more. I wanted to know if you are ever going to be in the Toronto area for any conferences or trade shows? I would love to attend and if possible buy you a coffee.

Thank you.

Sounds like a plan! Thanks for the nice words.

NOTE: Trend Following, TurtleTrader and Trend Commandments went live with audio books in 2016. All three are available.

The Complete TurtleTrader
The Complete TurtleTrader

The Australian Financial Review: David Harding

david harding

David Harding is one of the most successful trend followers alive. I have had the opportunity to meet with him several times. An excerpt from The Little Book of Trading:

Who doesn’t want to make a billion dollars? Yes, I imagine there are downsides to that type of wealth, but it must be one helluva ride to produce that kind of success— especially from essentially nothing. Is it a reasonable goal for you to make a billion dollars? Well, the odds are probably not on your side for that.

However, sometimes in this world, this crazy and often chaotic world of ours, people win the lottery. They buy a scratch-off ticket and win millions. They didn’t practice. They didn’t struggle. They didn’t do anything except buy a scratch-off ticket.

On the other side are people like David Harding. Harding struggled mightily early. However, Harding stuck with it for decades and is now a true billionaire. Don’t get me wrong—Harding, like many success stories, has had luck on his side.

However, that’s not the takeaway here. The takeaway is perseverance. The takeaway is not quitting. That’s how Harding really hit it big. Without perseverance, Harding would have had no chance for luck to shine through.

What can you do? You can learn to think like a trader who has made a billion dollars. And if you think like him, and if you model how a trader like that views the world, you can put yourself in a place to possibly make your billion. Note, I said possibly. The real reason, the honest reason to think like a billionaire, is to make your first million. Anyone with guts and determination can figure a way to make their first million, but you have to stick with the ups and downs. Known as the commodities king (primarily because the press always talk about some of the markets trend followers trade as opposed to their strategy), London’s Harding could be called an overnight trading sensation— only 30 years in the making.

His trend following trading has produced, on average, nearly 20 percent a year for 20 years. Let that digest for a second as you ponder the buy and hold investments in mutual funds you may have, slowing eating away at your capital and your sanity.

These days, the white-haired financial wizard (still under 50) enjoys collecting books on economic history, some dating back to the 1860s. In my time with him, he carried that distinct American entrepreneurial spirit center stage, along with a salty tongue of randy one-liners, all wrapped in a quintessential British flair.

Feedback from a listener who spotted David Harding in the news recently:

Hi Michael,

I hope you are well. Great work with the podcast. I thought I’d let you know that David Harding made front page news of the Australian Financial Review (23 November 2015).

Not too sure whether you can access the above given online version is subscription based. I’ve attached a PDF of the article for your reference. Looking forward to the next time David Harding makes an appearance on your show.

Cheers,
[Name]

Thanks!

Curiosity Should Take The Drivers Seat

I have written multiple books. All from a different perspective, but still all having trend following connective tissue. Consider an excerpt from the preface of my first book Trend Following:

Trend Following challenges much of the conventional wisdom about successful trading and traders. To avoid the influences of conventional wisdom, I was determined to avoid being influenced by institutionalized knowledge defined by Wall Street and was adamant about fighting “flat earth” thinking. During my research, starting with an assumption and then finding data to support it was avoided. Instead, questions were asked and then, objectively, doggedly, and slowly, answers were revealed.

If there was one factor that motivated me to work in this manner, it was simple curiosity. The more I uncovered about trend followers, the more I wanted to know. For example, one of the earliest questions (without an answer already) was learning who profited when Barings Bank collapsed. My research unearthed a connection between Barings Bank and trend follower John W. Henry (now the majority owner of the Boston Red Sox). Henry’s track record generated new questions, such as, “How did he discover trend following in the first place?” and “Has his approach changed in any significant way in the past 30 years?”

For those that follows my work, you can see how my foundation has remained the same over the past 15+ years:

Hi Michael,

Would you please clarify the chronology of your 4 books? What order were they written and published? Thank you.

[Name]

Trend Following
The Complete TurtleTrader
Trend Commandments
The Little Book of Trading

That is the order, but the content can be read in any order. Timeless.

Approach the Market in a New Way

Feedback in:

I want to thank you for writing your books. They got me to approach the market in a new way. I have dived head long into algo/quant trading through trend trading. As long as you trust the system and follow through you will succeed. I think that the simpler systems are better than complex. Also the markets are noisier than they were 20 years ago which make trend trading harder, but it is still the most successful method for trading. Thanks again Michael.

[Name]

Thanks.

Starting Out: One Man’s Story

An excerpt from my book:

Even though he loved his job in the markets, David Druz soon entered medical school to hedge his bets. Medicine was interesting to him, but he was 100 percent fascinated with the markets. Did he have lots of money? No. The only money he had was $5,000 in stock that his father had given him. Druz cashed that out and put it into his account. At that same time the brokerage firm offered him a job, a full-time job to quit medical school and go work for them. They offered Druz $50,000 to start. That was really good money in the 1970s. A slightly drunk friend told him, “Dave, don’t take that job. You can be a really good trader, but if you take that job, you’ll never be a great trader. You’ve got to get a nest egg for security. You don’t want to trade with scared money. Finish medical school, be a doctor, and then you’ll be a great trader.” Does that make sense to you? Maybe not at first blush, but it was the wisest piece of information anyone ever told Druz. He has since seen many people over the years trading with scared money—meaning they would make decisions on the value of the money to them (read: emotional decisions about a new car, suit, or wife), and not follow the exact rules of their trading plan. “Don’t quit your day job” is another critical success lesson—write it down and tape it over your desk. Druz took his $5,000 and started to trade. He wasn’t very good at first, and his account dropped down to around $1,500. At that point he had hit rock bottom and trading success was beginning to move out of sight. He then received a message from his brokerage firm, “You got a fill on your trade.” Druz said, “I don’t have any orders in. I’m out of business.” The brokerage replied, “No, you had a ‘Good Til Cancelled’ order (GTC) in and it is ‘limit up’.” Druz was back in business! The universe apparently would not allow him to quit—he truly believed that. You too might think sometimes, “If I only had one more chance,” but when the next opportunity or chance does come around again you have to be willing to get in the game and play again—without thinking about your negative first experience. Second chances are telling you something. Heed their advice.

Don’t Focus on Account Size, Focus on Learning and Process

Feedback in:

Merry Christmas, I have been listening to your podcast for a few weeks now. Great education and great guests. Listen, I am a 18 yo kid (on his way to becoming a man) from Montreal. I have been doing simulations since I was 16 and I have been reading a lot of books about trading lately. I have just started your turtle trader. I am going to start trading in 2014. I have a few questions:
1) Do have any tips and tricks for people starting of with small accounts (I will have 2000$)?
2) What are your exit strategies when you are profitable on a trader? In other words, who do you avoid turning a win into a loss?
3) How big should my positions be?

Thank you, [name]

First step? My books: here. The tips and tricks so to speak start there. My TurtleTrader book is a great step. Also, if you need more personal support my training is an option: here.

Teach Yourself to Be Great

An excerpt from The Little Book of Trading:

Can you teach yourself to trade? Do you realize how important learning on your own is if you really want to be a successful trader? Everything about Kevin Bruce’s trading is self-taught. He started in the basement of the University of Georgia library: The school had old editions of the Wall Street Journal on microfilm. In the basement dungeon, he would compile his own record of the open, high, low, and closing prices for all markets. At the time, Bruce was actually working at a gas station at night, and between cleaning bugs off windshields and pumping gas, he had time to think and research–which is where he would analyze that price data. Bruce had a Texas Instruments handheld calculator that helped him sort through price data collected from the library. He figured out how to mathematically define a trend (in order to profit from its movement). It was a basic trend trading system. It was the same system he had used for the trading game in school with slight tweaks. Ultimately, it was the same one he would use with real money in the decades to follow.

You can receive a free DVD of Bruce here.

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