Ep. 380: Lessons from Ken Tropin with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Clean Definition of Trend Following
For trend followers, the option premium is paid for after an unsuccessful trade is closed when a stop loss has been reached. This trading approach is similar to being long options because the stop loss creates a limited downside and the continuation of the trend creates the large upside. Events do not happen in a vacuum. They are often defined as events because markets are already pre-conditioned to fear bad news.
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