Nov 28, 2012
"Mr. Serenity" Tom Basso, the trend following trader famously featured in Jack Schwager's "New Market Wizards", returns to the show to speak with Michael Covel. This time, the focus is on questions posed by listeners. Basso and Covel go over the questions and talk about subjects such as the video of philosopher Alan Watts that Covel discussed on a recent podcast that asked, "what if money was no object?"; how Basso manages his emotions during both losing and winning periods; what drove Basso to "enjoy the ride" and whether there were periods in his life when it was difficult to do so; exit strategies on winning positions; Basso's use of hedges; the process behind taking a developed system from testing to live trading; what Basso learned from his earliest large drawdown; Basso's use of money management and risk control; Basso's advice to the first time programmer; how to handle skeptics of trend following; whether Basso considered the notion of serenity from the very beginning of his career; the career of John W. Henry; Basso's coin flip entry method, and the importance of exit strategies; percent betting; diversification; what would cause Basso to stop trading a particular system; comfort with uncertainty; Basso's views on initial capital at risk vs. unrealized gains; and fighting against your gut reaction when your system tells you otherwise. Basso brings a wealth of knowledge in answering these listener questions, so hop on and (as Basso says) "enjoy the ride".
Note: This original #83 episode has to been updated to include all Basso interviews so far. 4 hours plus!