Trend Following with Michael Covel
Bestselling author Michael Covel is the host of Trend Following Radio with 8+ million listens. Investments, economics, decision-making, human behavior & entrepreneurship--all passionately explored. Guests include Nobel Prize winners Robert Aumann, Angus Deaton, Daniel Kahneman, Harry Markowitz & Vernon Smith. Also: James Altucher, Dan Ariely, Jean-Philippe Bouchaud, Kathleen Eisenhardt, Marc Faber, Tim Ferriss, Jason Fried, Gerd Gigerenzer, Larry Hite, Sally Hogshead, Ryan Holiday, Jack Horner, Ewan Kirk, Steven Kotler, Michael Mauboussin, Tucker Max, Barry Ritholtz, Jim Rogers, Jack Schwager, Ed Seykota, Philip Tetlock & Walter Williams. All 800+ eps at www.trendfollowing.com/podcast.

Michael Covel talks with Peter Brandt, 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's 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. Brandt got his start in Chicago trading commodities and working at the Chicago Board of Trade for Continental Grain Company. Along the way he jumped from approach to approach until he found the book "Technical Analysis of Stock Trends" by Edwards and MaGee, and became a classical chartist. However, after leaving Continental Grain in the early 1980's he suffered a traumatic accident falling from seventeen feet onto a concrete slab while sleepwalking. Brandt suffered neurological and physical damage which affects him today, but he calls this tragedy a blessing. Covel and Brandt talk about how the accident influenced his trading and how great lessons can be learned through adversity. Covel and Brandt also discuss the idea of trading a five minute chart pattern vs. a weekly chart pattern; the biggest mistakes you can make as a novice trader; averaging a loser; risk management and the right amount to risk on any trade; upside volatility and the fantasy of a straight line up of profit gwoth; and the importance of reducing the incessant head chatter and living in the moment of now. There are some real commonalities between Brandt's approach and trend following, including the basic foundations of risk management and the importance of price. Brandt and Covel get to the bottom of their respective approaches, and explore how to find the best system for yourself. Special offers including a free DVD go to: www.trendfollowing.com/win.

Direct download: TrendFollowingManifesto102512.mp3
Category:general -- posted at: 6:34pm EST

Michael Covel talks about "The Power of Now" by Eckhart Tolle. Covel defends studying the book as a psychological manifesto for "navigating the trend following waters". Halfway through the book Covel realized how it sounded like all the trend following traders he's studied over the past fifteen years (even if it wasn't the author's intention). Covel isn't out to get you to start singing kumbaya and burning incense; he's just out to get you to look at the world differently so you can profit. Covel discusses Cullen Roche, author of the "Pragmatic Capitalism" blog, who posted some quotes from Warren Buffet recently. Covel acknowledges that Buffett is one of the most successful entrepreneurs in the history of modern man, but has no problem criticizing the myths that surround him. Buffett noted that Berkshire has $40 billion in cash on hand, but "prices are difficult right now". So, what does that even mean? Why is Buffett on CNBC? He's talking his "book", he's creating the aura, and perhaps confusing people into making decisions based off his advice. Or perhaps he simply needs his ego stroked. So, what do you buy based on that advice? How do you make buy and sell decisions? Trend following doesn't rely on vague statements, and the positive performance dates back to 1903. With trend following price is price. That is an under the radar concept though. Most people simply know Buffett's value investing, buy and hold world. However, there are inherent problems in value investing and Covel investigates by quoting David Rosenberg and John Hussman along the way. From their fundamental perspective Rosenberg and Hussman lay the foundation for trend following without thst being their intention. Covel also goes on to discuss "Finding Peace with Uncertainty" from the Zen Habits blog and announces a new $500 gun shooting video contest. Offer--Would you like a free special DVD: trendfollowing.com/free.html.

Direct download: TrendFollowingManifesto102412.mp3
Category:general -- posted at: 5:16am EST

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