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Ep. 551: Jack Schwager with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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How to Avoid Whipsaw Markets

Bob Greene: I think the most important rule about chart analysis is that when a signal, or what should be a classical signal, fails, that failure is itself often more reliable than the original signal. So if you are having whipsaws, for example, there's no way in the world that you cannot get hurt significantly if you have predominantly whipsaw markets. One way to counter that is to add some counter-trend-type markets. Most people think of things as being purely dynamic; we're talking about long-term investing here.

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