My guest today is Alpesh Patel, a hedge fund manager, Financial Times columnist and Bloomberg TV presenter.
The topic is his book How to Win at Spread Betting: An Analysis of Why Some People Win at Spread Betting and Some Lose.
In this episode of Trend Following Radio we discuss:
- Comparisons betweens stocks and futures
- What the winners have in common
- Trade frequency, and why active traders tended to do better in Patel's study
- Buy & holders vs. spread betters
- Academic vs. practical insights
- Whether Patel finds himself at odds with other Financial Times writers
- Why people like to imagine that trend following and momentum trading doesn't exist
- Patel's experience as an expert witness with "trend following on trial"
- Why the average person has difficulty with betting small, cutting losses, and letting winners ride
- George Soros, game theory and trading psychology
- Win/loss ratios
- A coin flipping experiment performed with Ph.D's, the importance of position sizing, and why systems aren't everything
- Why gut instinct is the opposite of what professional traders use
Jump in!
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I'm MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I'm proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.
To start? I'd like to give you a great piece of advice you can use in your life and trading journey… cut your losses! You will find much more about that philosophy here: https://www.trendfollowing.com/trend/
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Hope you enjoy my never-ending podcast conversation!
Michael Covel's Trend Following