Ep. 542: Trading Psych Mega Episode with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Psychology of Trend Following
I think it's interesting and I think you're seeing a push towards a greater acceptance of trend following within what we'll loosely call the behavioral community. We're beginning to recognize the sort of psychological underpinnings of these things. Some of the reasons that momentum persists is because of people's tendency to overreact or underreact for our tendency to update our preferences slowly. It just dovetails with everything that Daniel Kahneman and Amos Tversky did. And again, I'm not bringing this up and trying push trend following. I'm just saying it's an interesting example, especially in the spirit of where you've gone in your book.
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Transcript
