Michael Covel presents a monologue today about his recent trip to Mainland China (Beijing). A trip that centered on his presentation to 1100 Chinese investors and traders. For those listeners that have not yet traveled to China--either for business or vacation--Covel offers a wide-ranging primer. There is no doubt that from a business perspective especially--the time for China is now. The population is massive, the energy is overwhelming and the desire is infectious. Regardless of your current understanding of China, your perception of their government or the many other misunderstandings so prevalent in the West--China has at its core a deep desire for business and success. The adrenaline is simply to be felt. And yes, they want to learn trend following too. Free trend following DVD: www.trendfollowing.com/win.
Today on the podcast Michael Covel speaks with Dr. Jonathan Fader. Fader is a licensed clinical psychologist and is the team psychologist to the NY Mets baseball team. Fader also writes a blog for Psychology Today entitled 'The New You'. He maintains an active clinical practice, is an assistant professor of Family Medicine at the Albert Einstein College of Medicine and teaches in the Beth Israel Residency Program in Family Medicine in New York City. Fader and Covel discuss motivational interviewing, sport psychology techniques, process v. outcome, the mistake of focusing only on results, mental state and stress, mindfulness, Facebook distraction, Eastern traditions, the moment of now, and quieting the mind. Issues discussed apply to life, trading, sports and business--Fader offers insights we can all use. More on Fader at www.jonathanfader.com. If you would like a free trend following DVD go here: www.trendfollowing.com/win.
Michel Covel offers a take about passion -- the critical element of your success. An excerpt from the recent Birdman film and comments from Pink Floyd's Roger Waters help make the case. In Birdman the Michael Keaton character approaches a critic in a dive bar. Everyone is afraid to approach the critic, the fake gatekeeper. Keaton shows the passion. Are you afraid of the gatekeeper? Great. You have already lost. Next, Roger Waters talking about the classic song Brain Damage from the Dark Side of the Moon reveals his motivation, his passion. "Got to keep the loonies on the path." It doesn't matter your endeavor, trading, investing, entrepreneur--if passion is missing you are the walking dead, already 2 steps behind. The good news? Passion can be turned on instantly. It is in your power.
Michael Covel speaks with Ed Seykota on his second visit to the podcast. Originally profiled in the classic book 'The Market Wizards', Seykota has played a pivotal role in the growth of trend following trading for 40 years. This conversation breaks down into three parts: Govopoly, the Trading Tribe and trend following. Govopoly is Seykota's most recent book. In it he sees the economy transforming from a free and open societal structure to a controlled structure. The Govopoly system is taking over. It's not about another election to solve this, or to try and fix it. It is what it is and best we can all do is to cope with it. Seykota sees the Trading Tribe as one means of coping. The Trading Tribe is an association of people who commit to excellence, personal growth and supporting and receiving support from each other. The members of the Trading Tribe trade roles, becoming in turn senders and receivers for each other. Lastly, Seykota and Covel discuss trend following. Specifically, Seykota shares early experiences with Richard Donchian and his solo time with mainframes testing some of the first trend systems via computer. Finally, Seykota shares his motivation for his life (and some insights about puzzles).
Michael Covel discusses one of Michael Mauboussin's white papers, “The Babe Ruth Effect”. This paper first caught Covel’s eye over a decade ago. It makes the critical point that big wins can pay for small losses (expected value thinking). Covel discusses the expected value mindset and how it relates to other fields, especially venture capital through a blog entry by Chris Dixon. Next, Covel connects a podcast episode titled “Good Bubbles, Bad Bubbles, and Where Unicorns Come From” with Bill Janeway, a venture capitalist and partner at Warburg Pincus. Covel shares a few excerpts covering liquidity and survivorship bias (all in this frequency v. magnitude mindset and all relating back to the Babe Ruth effect). Covel brings these topics to trend following as well. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Steve Burns on his third appearance on the podcast. Steve Burns has been investing in the stock market for over 20 years. He is the author of seven books, ranks near the top 500 of all reviewers on Amazon.com, and is one of the sites top reviewers for books about trading. Additionally, Burns has singlehandedly developed an exceptional Twitter following. Today, Burns and Covel answer questions from readers of Burns' forum. Covel and Burns discuss the self-publishing world; how one goes about making choices in social media; getting over the obstacle of fundamentals; mindfulness and the writings of Alan Watts; backtesting processes; brand new traders being introduced to a model that loses 60% of the time; survivorship bias; predictive vs. reactive technical analysis. For more information on Steve Burns, visit newtraderu.com. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Tim Larkin on today’s podcast. Larkin is one of America’s leading Pro-Victim Rights and Personal Safety Advocates. He has had a 25 year career where he has trained over 10,000 clients in 52 countries in how to deal with imminent violence. His books include How To Survive The Most Critical 5 Seconds Of Your Life and Survive The Unthinkable. Covel and Larkin discuss the Virginia Tech killings and why it is important to study violence; looking at sports injuries for the purpose of self-defense; honor in fighting; the relation between prison gang leaders and CEOs; the importance of focusing on the man and his mind rather than the tool; avoidable acts of violence; why the United Kingdom did not allow Larkin into the country; and avoiding violence from a game theory perspective. For more information on Tim Larkin, visit targetfocustraining.com. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel offers a reminder of how to think and act when responding to certain types of questioning and the translation to markets. Covel can think of no more perfect example than the “greed” exchange between Milton Friedman and Phil Donahue. Covel discusses Milton Friedman more and brings and expands the discussion into the general take-down of bullshit. Covel also discusses the importance of 'losers' (see: zero sum) in the market and why people acting irrationally offers perpetual opportunities for trend following traders. Next, a personal anecdote regarding a pre-interview for a podcast, Maria Bartiromo, and the fundamental question: “Why will trend following continue to excel?” Finally, Covel moves onto a healthy bit of advice in risk management for your trading. Want a free trend following DVD? Go to trendfollowing.com/win.
Michael Covel speaks with Mike Melissinos and Glenn Graham on today’s “emerging trend following trader” episode. In 2011, Melissinos started Melissinos Trading in his parents’ house in New Jersey. Covel and Melissinos discuss Melissinos’ career and beginnings; his history with Bear Sterns; Melissinos’ introduction to trend following; “find trends, align with trends, and manage risks”; the similarities between crude oil, copper, sugar, the Euro, and wheat; and trading based purely on price. For more information on Mike Melissinos, visit melissinostrading.com. Glenn Graham’s firm is Golden Point Capital. Graham has had extensive experience in quantitative trading strategy development in the futures space. He holds the designation of Chartered Alternative Investment Analyst (CAIA), a designation focusing on the alternative asset classes. Graham and Covel discuss Graham’s early trading track record; niche markets and hedging; Graham’s early trading experiences and his history at a high frequency trading firm; early influences in trend style trading; the parallels between trading and backgammon; the importance of the size of your winners over winning percentage; and style drift. For more information on Glenn Graham, visit goldenpointcap.com. For a free DVD: trendfollowing.com/win.