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Ep. 160: Peter Borish Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Importance of Risk Management

There's an equilibrium for the moment at the margin and then things move away. For today, Netflix, that equilibrium price is 300. That price can be a lot different tomorrow. We misperceive risk all the time but we're willing to take a small risk for an incredibly high payoff. Successful traders are always focusing on their losses. Just because you've gone up doesn't mean you can't go up a lot more.

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