Ep. 61: Your First Loss Is Your Best Loss with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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How to Deal With Opportunity Cost
Nobody has unlimited capital. You have to have a certain set of rules that says I'm going to preserve capital until the market goes my way. So yeah the market could go the very opposite direction once you cut your loss. Deal with it. The price will rise in the future. How do you have an approach for when? If all of your money is stuck in the markets and you're waiting for the win to happen, you can't very well deal with opportunity cost. As long as I don't sell, I don't lose money. Then why worry? It's no big deal. Who cares? But come on."
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