Feb 26, 2014
Michael Covel interviews Al Abaroa today. Abaroa is Chief Investment Strategist at Kingsview and has been a registered broker and trader since 1993. He has seen all aspects of the investing industry. Today, Covel and Abaroa talk about a white paper that Abaroa wrote about trend following. Abaroa and Covel 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; and looking at trend following track records. Abaroa can be reached at firstname.lastname@example.org and the white paper discussed can be found at www.michaelcovel.com. Want a free trend following DVD go to www.trendfollowing.com/win.