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Ep. 3: Charles Faulkner Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Socialization of Risk

We are unconsciously, and I mean unconsciously, outside of awareness is in a trading room that a guy has a successful system. And other people will begin to trade closer to that system. In the banking area, what happened there was that the banks were all trading the same algorithms. They could have diversified. But everybody kind of gets in there because it feels more comfortable to be with the group,. To be with the herd. And then it doesn't feel risky.

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