Sun, 11 August 2013
Michael Covel's bubble is about to burst when it comes to arguments that appeal to emotion; logical fallacies. Straw men, appeals to authority, anecdotal arguments, and the like have all been on the rise. Covel gives some examples: Where is the proof and track records for predictive technical analysis? Trend following, which is a reactive strategy, has a mountain of evidence. A ton of performance data that gives an idea of how many traders across decades, markets, and economic climates both up and down, made money--and it's on file with the CFTC. There are a lot of people out there pushing this predictive TA. Where is the evidence? Yet, they came out swinging for Covel with the logical fallacies. There just aren't decades of track records like trend following. Another commenter tied trend following to his religion, even though trend following doesn't care about your religion--it's agnostic. Trend following is only about the rules, the process. Covel also talks about the phrase "active trader". Covel moves on to a clip from Pink Floyd frontman Roger Waters, discussing an argument over the song "Comfortably Numb" to illustrate his point. Next, Covel plays a clips from Ed Seykota and a clip from TED about Chinese one-party government. If you're listening, the threads connect. Want a free trend following DVD? Go to www.trendfollowing.com/win.