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Tag: trend follower

Poor, Smart and a Desire to Succeed

Posted on by Michael Covel

I recently reached out to an old trend following friend for a research paper I could not find. This was our interchange:

Hope all is well in [City]. Give me an update! Hey do you have this by chance?

He responds:

Good to hear from you. Let me see if I can find this paper. Ask [Name] also, but the abstract matches our own internal research findings. The update on [Name] is that we’re doing very well. We successfully got past our […], currently running at [number] in annual revenue and growing quick, [number] employees, clear vision for the future. I see us growing to [number] AUM within 5 years. Please consider helping your own loyal followers and encourage your young people looking for opportunity to contact us if they are interested pursuing this industry as a career path. We take bets on unconventional people if they show aptitude. As an example our best [name] and our best [name] came to learn about us via your blog and podcasts. They moved here from far away places like [name] to pursue their dreams and now their lives have been positively changed for the better by joining the meritocracy of [Name]. You have the power to change peoples lives by simply making them aware of an opportunity which they do not know exists.

We’re looking for PSD’s (Poor, Smart with a Deep Desire to Succeed)

Thanks! Fun feedback.

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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.

Leave Your Analysis at the Door

Posted on by Michael Covel

Feedback in:

Dear Micheal, I have a question for you that you might be having an answer for it. The question is related to those that try to ignore your market views only because its not based on fundamentals but based on TA [technical analysis], which is a huge debate that has been going on for centuries. For example, when you do your analysis and come up with a result that [the] market is indicting weakness in the medium term but market continues going higher and after few weeks or a month markets start to sell off aggressively and losing 15% in 1 week. Those people come to you and tell you, “But you where bearish for a long time and market went up and if we sold at that time we would have lost that the extra profit,” while if you told them [the] market could drop tomorrow, and it did they will also say that there was not enough time to get out as your call was late. How do you over come such debate? Appreciate your thoughts. Thanks in advance.

I am a trend follower. None of this debate or analysis applies. Have you read my first two books?

Note: Asking to read my books is not a dodge to his question, but rather an answer that will make his life better if he listens.

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.

Push Hard if You Want It!

Posted on by Michael Covel

If you want to meet anyone bad enough you will meet them. Recent feedback in:

TJ: Ever met Michael Marcus? How do you get to meet a guy like that? At least he is in So Cal and not Chicago!

Covel: Austin, Texas I thought. Meet? If you want it bad enough you will.

TJ: Humph, he must have moved. Yes, we can have anything we want if we are willing to pay the price.

I doubt he will meet him.

Note: I talk about these issues across my podcast, books and blog. Also, read Linchpin.

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.

No Funnymentals in Trend Following

Posted on by Michael Covel

Feedback in:

Hi Michael, I’ve been trading trends the last 3 years and it’s been good. However, whenever I revisit Market Wizards or listen to your podcasts, I always notice that some of the great traders, including the trend followers, have some fundamental aspects in their trading plus the use of technical indicators other than price. If trading is merely trading numbers and price action is really what matters, is it foolhardy to think that trading without charts(just daily closing prices and nothing else) can be profitable? I had manually churned out a set of performance data based on some EOD price charts of the last 15 years. But I’m planning to work on evaluating my trend following system using only prices and no charts. Is there someone who has traded trends profitably without charts? I appreciate your entire work of trend following. Thank you! Warmest regards, Francis T.

The core trend followers in my books? No funnymentals (Ed Seykota term of course). None of the trend followers in my books talk about charts. They use price data. Do charts help? That’s all subjective! Price is objective.

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.

Manage Your Money or Someone Else Can

Posted on by Michael Covel

Not interested in trading your own money? There are plenty of trend following firms out there to choose from. Some feedback:

I’m reading your book Trend Following, and I’m a believer. I’m not interested in becoming an expert. I would rather have someone do the investing for me, but I don’t see on the website any links for investors who want someone else to manage their funds. Have you got any options for me?

Thanks,
David

My five books are filled with ideas for those who might manage your money. I am not currently in the recommendation game.

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.

Richard Dennis Offers Sound Day Trading Advice

Posted on by Michael Covel

For every ten traders that try their luck at day trading nine of them will go broke. It is just the way the game works. Famed trader Richard Dennis had this to say about day trading:

If I’m buying and selling in the same day, it’s always to take a loss. I haven’t made a profit on a day-trade in five years.

Having a plan and sticking with it is also something Dennis stood by in his day trading advice:

“When you have a position, you put it on for a reason, and you’ve got to keep it until the reason no longer exists. Don’t take profits just for the sake of taking profits. You have to have a strategy to trade, know how it works and follow through on it.”

Without a solid plan, and the nerves to stick with it, the markets will exploit you, take advantage of you, and then in a sad quiet fashion…. leave you for broke on the side of the road.

Richard Dennis Tutle Traders Books
Be sure to read my book, the Complete Turtle Trader, to learn more on how Dennis led the Turtles to great success using the Trend Following method.

Find out more about the Turtle Traders.

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.

Trend Follower David Druz on Systems

Posted on by Michael Covel

From The Little Book of Trading trend follower David Druz has a plan:

Once a system’s algorithms and parameters are established, the system must be followed exactly and religiously. A system cannot be second-guessed or used intermittently. Values of variables cannot be altered. Parameters cannot be arbitrarily changed. A robust system works over many types of market conditions and over many timeframes. It works in German Bund futures and it works in wheat. It works when tested over 1950-1960 or over 1990-2000. Robust systems tend to be designed around successful trading tactics not designed around specific types of markets or market action. And here is the amazing thing about robust systems: The more robust a system, the more volatile it tends to be! Druz gives this advice: “There are whole families of trend trading ideas that seem to work forever on any market. The down side is they are very volatile because they are never curve-fit. They’re never exactly fit to any particular market or market condition. But over the long run, they do extract money from the market. You want to be focused on how you divvied up the risk in your portfolio, how much risk you take in each market, how many contracts you trade in each market, that’s the stuff that really counts…if you have money management wired, you can let volatility go because you know it doesn’t have any correlation with the risk of ruin. You can use volatility to your advantage.”

Wise.

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.