I’m a big fan of your podcast, and want to start trend trading. I’m a UCF student and actually just met Toby Crabel as he did a private meetup with the young investors club at UCF. I’ve been trading since January, but just blindly trading. I’m going to quit my Internship at Lockheed starting January to take the risk of being an independent trader for my last semester before having to start to pay off my student loans. Hopefully you can show me the right steps to being a successful trend follower.
All the best,
Starting steps: Go. And my podcast: Listen.
Hi Michael, I’m wondering if you have any general advice for someone striving to build some secondary income sources.
The reason I’m asking you is because you’ve built up your own website, written your own books and built up your own website.
My vision is to become a trend following trader, having a website and write some books. The trend following part is actually the easy bit since it only takes capital and a back-tested strategy. The hard part is the income source that could finance continuous saving.
So on the subject of building up some kind of platform, which you obviously are a master at, do you have any general advice? It can be hard to know where to start before putting in all the hours.
Become an entrepreneur. Read Linchpin by Seth Godin.
First off, thanks for the invaluable content you put out there. I got your email from your podcast. I’m not sure if you read these emails or have an automated response for all the people that email you. So in case you do, here it goes;
I’m in my mid 20’s living in San Diego and will be transferring to finish my degree in Economics/Finance at a top 30 school this fall. I’ve had no family support and will rely on savings (been working full time to go to school) and some student loans. I have educated myself about the basics in value investing and other investment strategies for the last couple years but I wanted to trade. So I got into technical analysis and started position trading with about $5,000, holding about 3 trades at a time for several months and using stop losses, making money and losing money on small and mid caps in tech, retail and energy, using sentiment and moving averages. So I reverted to value investing and read some more before gambling away more money, until I came across your works.
I am not risk averse, but don’t have the stomach for draw-downs of more than 50%, plus I am a curious individual and like to be involved, hence why trend following sounds more appealing to me. I could have a value and momentum combined portfolio, but sounds like the average yearly return (back tested until 1967) is an alpha of 16% with beta of 18%. I am not expecting to become rich overnight (although that should be every capitalist’s goal) but to make enough to a decent income and enough time to focus on finishing school and learn more and more about the markets.
I understand this takes time and education and in fact have been digesting a lot of books and have be wondering what your take is if you were in my shoes.
Thank you for all you do,
Some starting points here and here.
I’m a relatively new listener to your podcast and wanted to thank you for the quality material you present week over week. At the end of your recent show with guest Evan Carmichael you advised listeners to reach out if they have a sincere interest in trend trading. That’s me. I left my job with Vanguard to pursue cryptocurrency investing and so far my buy and hold strategy with Ethereum has worked well… but not good enough. I see a lot of potential for various aspects of technical analysis and momentum trading to be incorporated into the strategy I’m currently developing. I would greatly appreciate any materials you can offer to help me along the way in my journey toward actualizing a real trend trading approach to this asset class.
Thanks for the feedback.
Starting steps for more? Go here.
I’m a huge fan of your podcasts and have finished your books Trend Following, Little Book of Trading and Trend Commandments. I also listen to your podcast pretty religiously and am working through your early episodes with the fund managers. I’m currently in medical school living off loans so I use the public library for books whenever possible. I’m using just 50 day and 200 day moving averages and reading some of [name] works now. Do you have any advice on sources and ideas for trading systems and rules? Or any advice on the application of trend following.
Here is one way to start and another way to start.
I enjoy the podcasts. I certainly appreciate any tips for someone new in the trend following arena. Coming from a Ben Graham type investing style it is a bit different for me.
Sure, start here. And here.
A recent email exchange:
Covel: I see you posted an empty comment on my podcast. Questions for me?
Listener: I just purchased your book and was attempting to subscribe to your podcast sorry for the confusion. But, while you’re available, I would love to ask you a few questions. I just finished my Master’s at Harvard and have been trading on average 2,050 equity derivatives contracts per month for 3 years. I am an affiliate member of the MTA and have passed the CMT level 1& 2 and will be taking the level 3 in October. I have my first phone interview with the [Name] Group tomorrow and am committed to a life-long pursuit of being the best trader I can be. Would you have any advice for me? Thank you for your time Mr. Covel
Covel: What’s your goal?
Note: The best that I can be is a mirror. Most everyone knows their answer already. Accepting the answer is the hard part. This particular dialogue next went down the path of employee v. entrepreneur… Tough choices!