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Tag: Trend Following

Day Trading… Not My World

Posted on by Michael Covel

Feedback in:

Hi Michael, I see a few weeks ago you were after a new laptop 13 inch Air. Just trying to work out do you use that laptop on your travels to trade personally? Or have you got staff trading for you? You see the reason I ask is I know you are a trend trader and wondered if you trade on the go? And what time-frame do you use? Because I have been using daily time-frame, but now looking at 5 min time-frame because I believe even with small time frames like the 5 minute chart there are still trends, but just a lot smaller. But I know I will be paying more spreads, but there is a lot more action. Just wanted to know your thoughts. Thanks Michael.

All the best,
Simon

I have absolutely no feedback on day trading, 5 min bars etc. Not my world. And to paraphrase Ed Seykota, if you want to trade the really fast stuff, why not go for the speed of light?

Heavy sarcasm.

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.

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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.

I Give You The Head Start Trend Following Advantage

Posted on by Michael Covel

A recent email exchange:

Michael, How well does your system perform? What is the rate if wins over losses? What is the largest gain and largest loss on all your trades? What is the average length of time in a trade? What is the average gain of all your trades? I am trying to get an idea if your system will benefit me.

Thank you.

Sincerely,
Marcus

Beyond details here a few extra points to the service I provide:

    1. Classic trend following systems.
    2. Winners will typically be 3-4 x the size of losers. Winners typically 30-50% (of course “expectation” is the issue, not “winners”).
    3. Portfolios can vary, performance will vary.
    4. Risk/reward are related, so the end user can try to achieve a greater or lesser return. Drawdown of course related to these choices, and will vary too.
    5. Trades can be stopped out in days or weeks. Winners could exceed 1 year.

Are you a trend following trader now?

Mike, I don’t know what it takes to be a trend following trader. I have read all of your books, and I still have yet to get an idea of what your system is like. Most I read is about how well people (like the turtle traders) do, but not very much substance. I have been scammed multiple times before so I am very hesitant to buy anything that has not been tested out.

Sincerely,
Marcus

If you think my world is a scam please don’t join up. Just want to be upfront. I am simply giving you a head start and charging for it. You could figure it out on your own, but might spend years. There is no Holy Grail, it all takes work, but I do help people get there faster with actual systems they can apply.

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 Following and Controlled Baseball

Posted on by Michael Covel

Feedback in:

This post [below in italics] brings up some thoughts on selling trend following. Selling the logic of how and why it works doesn’t seem to pump people up enough to get them to try it. Its a story people don’t want to listen to even if it’s true. When it comes to investing, I feel people want to buy something that caters to their laziness, them wanting to feel cool or safe. I find it funny when trend traders scratch their heads wondering why more people aren’t investing this way. But the psychology that keeps them from investing in it is the same psychology that provides trend following profits. To me, it’s an interesting paradox.

Kanri Yaku (by S. Godin): Literally, “controlled baseball.” If you’re playing this way, it’s by the numbers. The manager tells you precisely what to do, and you do it. There are algorithms for when to bunt, for when to throw a ball. And there is no room for surprise. It is ground out (not a pun), controlled and predictable. Kanri yakyu will often get you into the playoffs. It rarely means you’re going to win the big games, though. The secret is being able to play this way when you need to, but being brave enough to leap when it’s least expected. Just like your career.

Nice.

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.

Ep. 225: Thomas Gilovich Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Thomas Gilovich
Thomas Gilovich

My guest today is Thomas Gilovich, an American psychologist who is the Irene Blecker Rosenfeld Professor of Psychology at Cornell University. He has conducted research in social psychology, decision making, behavioral economics, and has written popular books on these subjects.

In this episode of Trend Following Radio we discuss:

  • How his world dovetailed into money and markets
  • Basketball, streak shooting, and the “hot hand”
  • Randomness and the clustering illusion
  • The missing Malaysian Airlines flight and probability
  • The reluctance to accept a probabilistic view of the world
  • Politics, predictions, and probabilities
  • People who see the world in black and white
  • Drawing conclusions from incomplete and unrepresentative evidence, and how to avoid that folly
  • The position of the devil’s advocate, and the importance of that role
  • Gilovich’s response to the media’s talking heads, and their often black and white opinions
  • Behavioral economics vs. traditional economics
  • When people do the wrong thing because the public demands it
  • Bill James and the closer
  • Instinct vs. considered judgment and test taking
  • Irrationality in financial markets and bubbles
  • Loss aversion
  • Why you don’t need to be better than the market

Listen to this episode:

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Starting From The Ground Up

Posted on by Michael Covel

Feedback in:

Hi Mike, I’m looking for a way to connect with a trend following firm that can give me the chance to trade with a small account. I graduated last May with a B.A in economics from Baruch College. I have been testing and improving the trend following system I’m using for the past 2 years. I’m ready to exploit the system but I do not know where to begin. What would you advise me to do?

Raise capital, i.e. family, friends, etc. Very straightforward. It doesn’t matter how you do it or where it comes from–just do it.

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.

Ep. 224: Tom Dorsey Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Tom Dorsey
Tom Dorsey

My guest today is Tom Dorsey, the co-founder of Dorsey, Wright & Associates in 1987. Dorsey joined Nasdaq Global Information Services with Nasdaq’s acquisition of his company in 2015. He has been a regular guest on Fox’s “Cavuto on Business” and “Bulls & Bears” programs, and frequently speaks to audiences worldwide on topics related to the stock market, technical analysis, and Relative Strength investing.

The topics are his books Point & Figure Charting: The Essential Application for Forecasting and Tracking Market Prices, Thriving as a Broker in the 21st Century and Tom Dorsey’s Trading Tips: A Playbook for Stock Market Success.

In this episode of Trend Following Radio we discuss:

  • View of technical analysis, with a specialization in point & figure and relative strength
  • Dealing with a bear market in Dorsey’s early days
  • Early training in options; how Dorsey learned about point & figure trading
  • Definitions and explanations of point & figure trading
  • How point & figure works like a tennis match
  • Automating your strategy
  • The criticism of “black boxes”
  • A third grade experiment
  • How Charles Schwab changed the world
  • How technology influences the technical analysis world

Listen to this episode:

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Trend Following Tough Love

Posted on by Michael Covel

A recent random conversation with a stranger:

[Name]: Good evening Michael, are you coming back to HCM City?

Michael: Why?

[Name]: Could I invite you to a cup of coffee in HCM city? In the coffee shop near your hotel?

Michael: Can I ask how I can help? What would you like?

[Name]: My goal is just [to] make friends and learn from you.

Michael: The best way to learn from me is not to meet with me now.

[Name]: The same as when you meet other successful traders. I don’t intend to harm or bring a bad thing to you.

Michael: I did not think that, but the best way to learn from me right now is not to meet me.

[Name]: I read many books by you. If you were me, you always want to meet the author of a book. If you are a trader you always want to meet successful traders.

Michael: Listen to Howard Lindzon podcast and read book “Linchpin” by Seth Godin. Then you will know more how I think about random meetings. My advice is useful.

[Name]: Just spend about 1 hour in a coffee shop. I think it isn’t difficult.

Michael: Now you are not listening to my advice. Even less interested to meet. Best of luck.

Tough love? You bet. Did he hear me? No.

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.