Trend Following With Michael Covel

My guest today is Van Tharp, Tharp runs the Van Tharp Institute and is the author of four acclaimed books published by McGraw Hill: Super Trader, Trade Your Way to Financial Freedom, Safe Strategies for Financial Freedom, and Financial Freedom Through Electronic Day Trading. He was also featured in Jack Schwager's Market Wizard's: Interviews with Great Traders. Van Tharp received his Ph.D. in psychology, is a certified Master Practitioner of Neuro Linguistic Programming (NLP), a Certified Master Time Line Therapist, a certified Modeler of NLP, and an Assistant Trainer of NLP. He has used his expertise in NLP to create the successful models of trading and investing upon which so much of his work is based. The topic is his book Trading Beyond the Matrix: The Red Pill for Traders and Investors. In this episode of Trend Following Radio we discuss: Beliefs in the context of trading and investing The moment of now, and the Navajo's belief of a never-ending present The belief examination paradigm "Big money" and wh

My guest today is David Ryan. Ryan was famously first featured in Jack Schwager's "Market Wizards" book. Ryan has been the U.S. Investing Champion for 3 times and also worked for William O'Neil.  The topic is market wizards strategies. In this episode of Trend Following Radio we discuss: How Ryan got his start walking up to the front door of O'Neil's offices How Ryan would describe his approach to trading today CAN SLIM trading, and buying the breakout vs. buying the dip Enjoying trading without clients Some good CAN SLIM winners in the past two to three years from Ryan's perspective Big picture-wise, the max loss that Ryan is willing to take on a position The type of winning percentages that Ryan really sees The uneasiness about the overall market system since the 2008 financial crisis and how Ryan looks at how the situation has unfolded High frequency trading How the market can be humbling; and getting your ego out of the market Jump in! --- I'm MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I'm pr

My guest today is Jerry Parker, an original Turtle, trained by Richard Dennis. However, since then he has very successfully run a managed money firm called Chesapeake Capital. The topic is Trend Following. In this episode of Trend Following Radio we discuss: Mean reversion trading What the definition of momentum trading is compared to trend following Why "good enough" is more rigorous than any metric How the intervention of the Fed has broken up trends and made volatility drop in markets How the idea of uncertainty and talking in probabilities makes people uncomfortable The difference between managed futures and trend following Why buy and hold is predicated on trust of the Fed Why trend followers don't look to "beat" the market Jump in! --- 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 explore

My guest today is Walter Williams, an American economist, commentator, and academic. He is the John M. Olin Distinguished Professor of Economics at George Mason University, as well as a syndicated columnist and author known for his libertarian views. The topics are liberty and economics. In this episode of Trend Following Radio we discuss: Why Williams calls himself a radical The morality of markets The welfare state and bailouts How Williams didn't "think poor" growing up The nefarious aspect of minimum wage How Williams stayed positive and avoided bitterness despite opposition Malcolm X. and Martin Luther King, Jr. Why there's no poverty in the United States How Williams felt about the Fall of 2008 and the bailouts that took place How we got to the point where people want to trust the state so much How Williams has developed a thick skin to deal with the criticism of his radical nature Jump in! --- I'm MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I'm proud to have delivered 10+ million podcast li

My guest today is John Mauldin, a noted financial expert, a New York Times best-selling author, a pioneering online commentator, and the publisher of one of the most widely read investment newsletters in the world. The topic is finance. In this episode of Trend Following Radio we discuss: Credit card rates and zero interest rate policy The improper use of credit Debt spirals Central bank policies that keep whipsaw periods going The actions in Japan and how they can spread across the world The justifications that Mauldin sees behind the scenes Black swans and boom-bust periods How the 2008 financial crisis wasn't a true black swan event The "why" behind zero interest rate policy The specter of Keynesianism over the world Jump in! --- 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 deb

My guest today is Jean-Philippe Bouchaud, the Chairman of the multi-strategy quantitative hedge fund Capital Fund Management (5B+ AUM) and co-supervisor of the research team. He is a well known authority in the field of Econophysics, co-author of "Theory of Financial Risks and Derivative Pricing", a Professor of École Polytechnique where he teaches Complex Systems and has his Ph.D in theoretical physics from École Normale Supérieure. The topic is Trend Following. In this episode of Trend Following Radio we discuss: Bouchaud's physics background and how it collided with the world of classical economics The Black-Scholes model, and its still use; experimenting with simulation Bouchaud and his colleague's paper, "Two Centuries of Trend Following" The efficient market hypothesis Why the existence of trends is one of the most statistically significant anomalies in financial markets How trends predate trend following Why classical economics has no framework through which to understand "wild markets" Benign randomn

Please enjoy my monologue A Cult-Like Indoctrination with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive. --- 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 My social media platforms: Twitter: @covel Facebook: @trendfollowing LinkedIn: @covel Instagram: @mikecovel Hope you enjoy my never-ending podcast convers

My guest today is Nir Eyal, an educator, author, and entrepreneur who is all about connecting psychology, technology, and business. The topic is his book Hooked: How To Build Habit Forming Products. In this episode of Trend Following Radio we discuss: How behavior and habits can be engineered, and how technology changes our behavior The moral implications of habit forming activities The difference between habits and addictions Breaking "the hook" The four areas that "the hook" goes through: trigger, action, variable reward, and investment The IKEA example and how value can be built Eyal's mentors and influences The importance of social feedback from your community The WhatsApp deal, and how to deal with your "insane jealousy" of the messaging app deal Getting equal pay for equal work, and how that might be embedded in our DNA The importance of interface changes when it comes to revolutionary changes in technology Jump in! --- I'm MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I'm proud to have delive

My guest today is Brett Steenbarger, a Clinical Associate Professor of Psychiatry and Behavioral Sciences at SUNY Upstate Medical University in Syracuse, NY. The topic is Trend Following. In this episode of Trend Following Radio we discuss: What a "flow state" is, and why it's important How Steenbarger has seen flow connect to the trading world, and the importance of matching your level of difficulty and challenge Risk and risk tolerance The logical and psychological sides to risk "What have you done for me lately" attitude for investors Why we don't grow if we stay within our comfort zones Process vs. outcome The psychological burden of certain fee structures Some of the common characteristics of successful traders Slow thinking, deep thinking, and fast thinking Where we're headed regarding prescription drugs related to the mind Trend trading vs. mean reversion Contextualism Trend following vs. momentum trading How people actually behave vs. how they describe their behavior Jump in! --- I'm MICHAEL COVEL,

My guests today are Larry Hite and Alex Greyserman.  Hite is a hedge fund manager and is one of the forefathers of system trading. He was famously featured in the Market Wizards book. A few years ago he started ISAM with Stanley Fink. Greyserman has 25 years of experience in the CTA industry, and was originally hired by Larry Hite at Mint. Greyserman is Chief Scientist at ISAM (PhD in Statistics). He is also a professor at Columbia University. The topic is Trend Following. In this episode of Trend Following Radio we discuss: Singapore, and Covel's recent excursions in Asia How the game has stayed the same despite zero interest rate policy What people are missing when they say "trend following is dead" How you'll never get perfection Their 800 year study, the premise, and what was found out Measuring human nature The difference between divergent and convergent strategies Risk management Having "perfect" knowledge Using long trends and getting whipsawed in shorter trends The asset class of trend following comp

My guest today is Sharon Moalem, a physician and author. Moalem's previous book, "Survival Of The Sickest", was a New York Times bestseller. The topic is his book Inheritance: How Our Genes Change Our Lives, and Our Lives Change Our Genes. In this episode of Trend Following Radio we discuss: Rafael Nadal as an example of digging deep in genetics How our bodies are constantly in a state of deconstruction and reconstruction How DNA is under constant modification Genetic personalized medicine "Jeff the chef" and an example of specific dietary needs Dysmorphology and analyzing the hands, feet, and face of an individual Gregor Mendel and his pea experiments in genetics How your behavior can dictate your genetic destiny The future of personalized genetic medicine Critics and misunderstandings of genetics Vitamins on an individual basis Jump in! --- 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, polit

My guest today is Robin Hanson, an associate professor of economics at George Mason University and a research associate at the Future of Humanity Institute of Oxford University. The topic is outside the box economic perspectives. In this episode of Trend Following Radio we discuss: Prediction markets Vernon Smith and coming up with the "why" for booms and busts Dealing with a complex world based on our limited abilities Steering towards humanity's future Hanson's physics background, and how he came to where prediction markets became a passion How prediction markets can make us pay more attention to the truth Hayek and Mises, and some of their thinking early on What taboos and idealogical beliefs might stop one from making optimal decisions If people have employed particular trading strategies to the prediction markets Stop losses as information and as risk preference Setting up a market to bet on geopolitical events in the Middle East, and the controversy based around that Why DC politicians often cannot han

My guest today is Harry Markowitz, the third Nobel Prize winner to appear on this podcast. Markowitz is an American economist who received the 1989 John von Neumann Theory Prize and the 1990 Nobel Memorial Prize in Economic Sciences. Markowitz is a professor of finance at the Rady School of Management at the University of California, San Diego. The topic is modern finance. In this episode of Trend Following Radio we discuss: Justin Fox and "The Myth Of The Rational Market" Markowitz's beginnings, and the Nobel Prize Markowitz's 1952 paper How Markowitz felt about some of his prescriptions and ideas being interpreted into dogma Why Wall Street was not interested in Markowitz's theories at one time Diversification for the right reason Markowitz's new four-volume book Advice on maintaining mental acuity at an advanced age and sounding like you're 35 when you're 86 years young Markowitz's attraction to the philosopher Hume If it was fifty years later, if Markowitz would be a quant running a hedge fund today Mark

My guest today is Ryan Holiday, director of marketing for American Apparel; media strategist for Tucker Max, Dov Charney, and others. The topic is his book The Obstacle Is the Way: The Timeless Art of Turning Trials into Triumph. In this episode of Trend Following Radio we discuss: Marcus Aurelius' philosophy and stoicism, and why it has such a hold on Holiday Distraction Why the impediment to action actually advances action The unpredictability of the world, and how we react to the world George Clooney, and his start as an actor related to the obstacles we all face Steve Jobs' reality distortion field What drives Holiday today How will is the ultimate trump card The two definitions of will Alabama Crimson Tide coach Nick Saban and his approach to the moment of now Feeling great about the fight, the adversity, and the challenge How the process is intrinsically valuable Jump in! --- I'm MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I'm proud to have delivered 10+ million podcast listens since 2012. I

My guest today is Larry Doyle, a former JP Morgan banker. Larry embarked on his Wall Street career in 1983 as a mortgage-backed securities trader for The First Boston Corporation, and was involved in the growth and development of the secondary mortgage market from its near infancy. The topic is his book In Bed with Wall Street: How Bankers, Regulators and Politicians Conspire to Cripple Our Global Economy. In this episode of Trend Following Radio we discuss: Doyle's background and why he put "In Bed With Wall Street" together Madoff, and what was missed from a regulatory perspective KYC, or "knowing your customer" MF Global, Jon Corzine, and touching customer funds Dodd Frank and the supposed fixes to the 2008 financial crisis, and why Dodd Frank was more of an architectual blueprint rather than a completed piece of legislation Regulatory reforms to help fix the problems created in the 2008 financial crisis Informing the general public of the problems surrounding Wall Street today The "bribe" of equity marke

My guest today is Tucker Max, an American author and public speaker. He chronicles his drinking and sexual encounters in the form of short stories on his website TuckerMax.com, which has received millions of visitors since Max launched it as the result of a bet in 2000. The topic is success. In this episode of Trend Following Radio we discuss: Covel and Max talk about their first meeting, and Max's brutally honest advice to Covel Diet and nutrition The NCAA, college athletics, exploitation, the media, and having to 'beat' the system Marginal cost and marginal product Entrepreneurial thinking and Max's early career Max's experience in marketing Protecting your independence Christopher Hitchens Facing rejection in publishing, and how rejection is part of success How success only teaches you to repeat what you did before, and failure forces you to think What drives Max today How the landscape has changed in regards to authors The fight for authority and trust in the publishing world What motivates Tucker Max to

Please enjoy my monologue Two Centuries of Trend Following with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive. --- 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 My social media platforms: Twitter: @covel Facebook: @trendfollowing LinkedIn: @covel Instagram: @mikecovel Hope you enjoy my never-ending podcast c

My guest today is Mark Minervini, a technical analyst, acclaimed author, instructor, and independent trader. He has over 30 years of experience in finance, and was featured in Jack Schwager's Stock Market Wizards; Conversations with America's Top Stock Traders. The topic is his book Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market. In this episode of Trend Following Radio we discuss: Importance of influences outside of the finance world Minervini's atypical background in music and how he got to where he is today Capturing 'super performance' and the trend The importance of cutting your losers short How Minervini spends his day Richard Love and 'super performance' stocks Why Minervini is not a fan of diversification beyond the minimum amount that you can get away with Richard Donchian, Jesse Livermore and their influence on Minervini Timeless strategies Paul Tudor Jones and 'losers average losers' The importance of not just trading what you know 'New high ground' and

My guest today is William Adams, a private trader and systems developer. He is based in Zurich and works with institutional clients. Adams has over 17 years of experience in financial markets. The topic is trading. In this episode of Trend Following Radio we discuss: If Adams views himself as a trend following trader Why the word futures can be problematic Broad diversification and diversifying on a number of different tiers Risk-based diversification Why making sure you're in the game is the most important factor Why every business is seasonal Why price is the most important aspect to a trade How Adams has (or doesn't have) the "expertise" to trade certain markets Informing your system of various events as a quantitative or systematic trader Thinking about Adams' strategy in the context of evolution Core baskets vs. satellite baskets The adaptive aspect of what Adams does The philosophical and operational aspects of volatility Average true range as a volatility measure Trading to make a return vs. trading a

Please enjoy my monologue The Vocabulary of The Media with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive. --- 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 My social media platforms: Twitter: @covel Facebook: @trendfollowing LinkedIn: @covel Instagram: @mikecovel Hope you enjoy my never-ending podcast conver