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Ep. 598: Trading Legends Epic Episode on Trend Following Radio

Trading Legends Epic Episode on Trend Following Radio
Trading Legends Epic Episode on Trend Following Radio

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Today’s combo episode consists of four classic episodes aggregated into one big modern podcast. Jack Schwager, Peter Brandt, Larry Williams and Toby Crabel are four pro traders who hopefully give every listener an aha moment.

Jack Schwager is author of the Market Wizards series and just completed his second edition of A Complete Guide to the Futures Markets: Fundamental Analysis, Technical Analysis, Trading, Spreads, and Options.

Peter Brandt is author of Diary of a Professional Commodity Trader: Lessons from 21 Weeks of Real Trading, and a trader who has been in the commodity trading space since 1976. He has traded his own proprietary account from the late 1970’s until today, and is currently entering the hedge fund world by running a multi-CTA fund-of-funds.

Larry Williams is the author of eleven books, most on stocks and commodity trading. He is also a stock and commodity trader, and politician. He has been in the trading game for over four decades and his name is well known in all trading circles.

Toby Crabel is founder of Crabel Capital Management. Toby is a short term systematic trader which is a much different trading style than trend following. Toby is also a former pro tennis player and has a philosophical nature in discussing the trading world.

In this episode of Trend Following Radio:

  • Fundamentals vs. Technical analysis
  • Risk management
  • Contrarian view on fundamentals
  • Charting
  • Science vs. art in trading
  • Whipsaws
  • Exploiting trends
  • Sharpe ratio
  • Efficient market hypothesis
  • Five minute chart patterns vs. a weekly chart patterns
  • Mistakes as a novice trader
  • Averaging losers
  • Risk management
  • Upside volatility
  • Reducing incessant head chatter
  • Living in the moment of now.
  • Price movement and volume
  • Price shocks
  • Diversification
  • Objectivism

Mentions & Resources:

Listen to this episode:

“This may seem a little corny…”

Feedback in:

Mr. Covel,

This may seem a little corny and believe me I don’t send emails like this out to anyone. Just not my thing. But I wanted to thank you for all your work and the info you provide! You have helped me immensely with my trading. Not just the technical side but also the psychological side. Like you have quoted that trading is the hardest way to make easy money. I have been trading for many years and believe me I have tried everything. But when I found your podcast and read your books it has drastically improved my trading. Which by the way your podcast is number one on my Podcasts list. In the world of trading, trend following can be a lonely world. What I mean is, friends of mine that trade just don’t understand what trend following is. When I try to explain to them what I do, I always get that deer in the headlight look. So many of them look for the story or want to be right instead of just following price. Anyway, I don’t want to keep you, I just wanted to let you know. Keep up the great info. My only recommendation is for you to get the legend back on your show. Ed Seykota! Very hard to find interviews with him and if anyone can, it is you. That’s it. It’s my goal to someday meet up with you for a cup of coffee or a beer and pick your brain.

Thanks again!

Sounds like a plan!

Trend Following in Bulgaria

Feedback in:

Dear Mr. Covel, My name is [name] and I am Assistant professor in Investments at Faculty of Economics and Business Administration at Sofia University in Bulgaria. I am also a portfolio manager, trader and since last year – sole publisher of books on investments. In 2012 and 2013 with the help of some friends (traders) I organized [seminars here]. These seminars were open to anybody in Bulgaria, willing to hear from professionals how to trade and to follow the trend. One of the lecturers last year [name] suggested to us your book The Complete TurtleTrader. I read it and I liked it very much. And I thought that it will be a good idea if I translate it and publish it in Bulgaria (there are people, who trade or would like to trade, but do not know enough English to read it). I saw on your website that you have other books too. So, I am writing to you to ask you if you would like to sell the rights to translate in Bulgarian and publish your books (or at least one of them) in Bulgaria? Also, would you like to participate on the next Trend Following seminar as lecturer? The seminar will be most likely in April this year. The lectures are done by Skype call.

What do you think?
Best regards,
[name]

Yes, my publishers can be connected with you to discuss rights issues. Which book? Seminars? What is your proposal? Do you ever have these where the presenter is there in person?

“Good Morning Mr. Dennis!”

My book on the Turtles serves up lessons that never go stale. An excerpt:

People were willing to do just about anything to get Dennis’s attention [to get hired as one of his student traders]. Of all the approaches his students took to get themselves admitted to his trading school, Jim Melnick’s was the most extreme and inventive. He was an overweight, working-class guy from Boston who was living over a saloon in the Chicago suburbs. However, Melnick was determined to get as close to Dennis as possible. He actually moved to Chicago just because he’d heard about Richard Dennis. He ended up as a security guard for the Chicago Board of Trade and every morning would say, “Good morning, Mr. Dennis” as Dennis entered the building. Then, boom, the ad came out and Melnick got selected. Dennis, who was loaded with millions and power, took a guy off the street and gave him the opportunity to start a new life. The story of Melnick is pure rags-to-riches. How did he know that getting that close to Dennis could lead to something? He didn’t, of course, but he hoped it would. His self-confidence was prophetic. Another of Dennis’s students described Jim’s “everyman” qualities: “He reminded me of a truck driver and like magic became a ‘Turtle’ and he still couldn’t believe why or how…as far as where he is today, I have no clue at all.” Mike Shannon, a former actor who had left school at the age of sixteen, made it to Dennis’s door, too. He recalled, “I was working as a broker, and I was a very bad commodity broker.” Through a bunch of floor brokers Shannon found out about the ad, but he knew his résumé was problematic. He had a solution to that: “I made up a phony résumé, and I sent it off to Richard Dennis. I used the school of audacity to get the job.” People get fired or, at the very least, don’t get hired because of falsifying a résumé, but that was not how it worked with the eccentric head of C&D Commodities.

Nice.

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