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Ep. 350: Michael Melissinos & Glenn Graham Interviews with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Importance of Winning Trades

I think one of the things I've seen in your writings that I really like, though, is the idea that the ratio of the winning trades is not important. It's just the size of the winning trade. Well, if we can accept that, that our trades are overwhelmingly going to be losers, then we can somewhat set our expectations lower on each trade. Sure, it would be great if every trade could turn into a winner right away. But if we don't expect that, then it's easier to stick with the plan and not let anything distract you from that plan along the way.

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