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Tag: Trend Following

Stops. Just Stops.

Posted on by Michael Covel

Feedback in for a new podcast idea:

Podcast idea: How do you reconcile “Let your profits run” with “Pigs get slaughtered?”

Easy — a stop.

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. 217: Risk, Reward and The Process with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Risk, Reward and The Process with Michael Covel on Trend Following Radio
Risk, Reward and The Process with Michael Covel on Trend Following Radio

Please enjoy my monologue Risk, Reward and The Process with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

Listen to this episode:

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

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More on Malcolm Gladwell & Nassim Taleb can be found here.

Ep. 216: Jack Schwager Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Jack Schwager
Jack Schwager

My guest today is Jack Schwager, a recognized industry expert in futures and hedge funds and the author of a number of widely acclaimed financial books. Schwager is one of the founders of Fund Seeder. Previously, he was a partner in the Fortune Group, a London-based hedge fund advisory firm. His prior experience also includes 22 years as Director of Futures research for some of Wall Street’s leading firms, most recently Prudential Securities.

The topic is his book The Little Book of Market Wizards.

In this episode of Trend Following Radio we discuss:

  • How Fund Seeder acts as a liason for traders and investors
  • The difficulty of starting out as a new trader
  • How Fund Seeder is a global opportunity
  • Schwager’s last book, Hedge Fund Market Wizards
  • The timeless quality of the Market Wizards books
  • Jesse Livermore’s Reminiscences of a Stock Operator
  • How human nature is the only thing that will never change
  • Looking for a “secret recipe” in the Market Wizards book
  • “The Upside of Down: Why Failing Well Is The Key To Success” by Megan McArdle
  • Why failure is smart and an essential part of success
  • The importance of failure in the context of education
  • Behavioral economics
  • Jack Horner and thinking outside of the box
  • The importance of loving what you do for a living
  • The importance of travel

Listen to this episode:

Jump in!

New Trend Following Chinese Trader

Posted on by Michael Covel

A recent exchange:

Yuhui: When knowing that if someone strictly uses a trading system that its mathematical expectation is positive in a long time then he will get profit, but a question suddenly came to my mind: What will happen if everyone trades like this? Although in your book[s] you have listed several reasons why there are always many people won’t be the trend traders, but [a] positive math expectation trading system can be easily written to the computer and automatically executed by the computers now. Meanwhile, It’s said that this kind automatic trading system is already generally used in the futures market. I want to know what do you think how trend-trading will [perform] when in this condition. What’s more, I’m wondering about how your life is currently. As a successful trader are you living a free and relaxing life, or busy in dealing with the matter of your company. Finally, if possible, expecting the trend-following DVD, my address is [address] and my telephone number is [#], and my name is Yuhui (喻 辉).

Covel: My five books outline why not everyone will become a trend following trader. It’s often against human nature and people dislike drawdowns. They seem more comfortable with black swans that wipe it out all (their accounts that is). You can follow my life here: podcast.

Yuhui: Thanks for replying. Have read your books again and again and some story impressed me very much. Also read the reason you list why not everyone become a trend following trader. But once upon a time I read a book and remembering that the introduction of the author saying that his average income of programming automatic futures trading system can be up to 8% per month. So I just have an idea that what if everyone trades like him in the market? Maybe this condition will never happen because people are easy to be influenced by the cognitive bias in the trading, but somehow I still feel confused about this. And here is my address in Chinese and English.

Covel: 8% a month? Not a wise goal. That will not happen on a consistent basis that you can count on.

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.

Who Can Accurately Forecast? No One!

Posted on by Michael Covel

This article excerpt from Joshua Brown recently came into my in box:

People Who Cannot Accurately Forecast Markets

1. Hedge fund managers
2. Wall Street’s top strategists
3. Technical analysts
4. Day-traders
5. Swing-traders
6. Newsletter writers and book authors
7. Journalists
8. Financial advisors
9. Your dentist
10. Leading finance professors
11. Famous economists
12. Bloggers and columnists
13. Tweeters
14. Horses who count with their hooves
15. Astrologers
16. Value investors
17. Investment clubs
18. Message board aficionados
19. TV hosts
20. Mutual fund managers
21. Sell-side analysts
22. ETF companies
23. Institutions, pensions and endowments
24. Me
25. You

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.

Luck Favors the Prepared and Persistent

Posted on by Michael Covel

James Altucher‘s latest blog post “The Ultimate Cheat Sheet for Mastery” is worth a read if you want to know what it takes to truly master something. An excerpt:

At some point you have to cook 10,000 meals. Or play a million hands of poker. Or 1000s of games of chess. Or start 20 businesses.

Very few are successful right away. That would require too much luck and luck favors the prepared and the persistent.

In those 1000s of whatever you will encounter much failure. We all know that the best baseball players in the world are enormous successes if they strike out “only” 70% of the time.

When my dad died I went to his house and logged onto this chess account. I saw that he played about 30,000 games. He never got any better.

A lot of people can play the 10,000 hands of poker and never get better. Or bake 1000 cakes and never get better.

You have to remember your experiences, study your failures, try to note what you did right and what you did wrong, and remember them for future experiences.

Will future experiences be exactly like the old experiences? Almost never.

But you have to have the ability to say “Hmm, this is like the time four years ago when X, Y, and Z happened.”

Read entire article here. Good job James.

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.