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Bestselling author Michael Covel is the host of Trend Following Radio with 10+ million listens. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trading -- all passionately explored and debated. Guests include Nobel Prize winners: Robert Aumann, Angus Deaton, Daniel Kahneman, Oliver Hart, Harry Markowitz & Vernon Smith. More guests: Jack Canfield, Howard Marks, 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.

Feb 26, 2014

My guest today is Al Abaroa, the Chief Investment Strategist at Kingsview and has been a registered broker and trader since 1993. He has seen all aspects of the investing industry.

The topic is a white paper that Abaroa wrote about trend following.

In this episode of Trend Following Radio we discuss:

  • How people forget that anything can and will happen
  • Why we’re seeing optimistic behavior in the market
  • The similarities between the WhatsApp/Facebook acquisition and the AOL/Time Warner acquisition
  • Abaroa’s wealth formula
  • “Reasonable returns”
  • Long term vs. short term outlooks
  • The advantages of youth in trading
  • Lifespan growth, and retirement
  • Tom Basso and black swan events
  • Looking back on major crashes
  • Development and distribution as the two modalities of price
  • Focusing on price action
  • The Global Volatility Index
  • Looking at black swan periods as a place to profit
  • The asymmetrical return stream and the asymmetrical nature of trend following
  • Why trend following produces returns a minority of the time
  • Position sizing
  • Fixed contract allocation vs. fixed fractional contract allocation and their role in position sizing
  • Trend following investors and market timing
  • Seeking immediate gratification in trend following investments
  • Looking at trend following track records

Jump in!

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I’m MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I’m proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.

To start? I’d like to give you a great piece of advice you can use in your life and trading journey… cut your losses! You will find much more about that philosophy here: https://www.trendfollowing.com/trend/

You can watch a free video here: https://www.trendfollowing.com/video/

Can’t get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast

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Hope you enjoy my never-ending podcast conversation!