Michael Covel's Trend Following

My guest today is Thomas Gilovich, an American psychologist who is the Irene Blecker Rosenfeld Professor of Psychology at Cornell University. He has conducted research in social psychology, decision making, behavioral economics, and has written popular books on these subjects. The topic is behavioral economics. In this episode of Trend Following Radio we discuss: How his world dovetailed into money and markets Basketball, streak shooting, and the "hot hand" Randomness and the clustering illusion The missing Malaysian Airlines flight and probability The reluctance to accept a probabilistic view of the world Politics, predictions, and probabilities People who see the world in black and white Drawing conclusions from incomplete and unrepresentative evidence, and how to avoid that folly The position of the devil's advocate, and the importance of that role Gilovich's response to the media's talking heads, and their often black and white opinions Behavioral economics vs. traditional economics When people do the wrong thing because the public demands it Bill James and the closer Instinct vs. considered judgment and test taking Irrationality in financial markets and bubbles Loss aversion Why you don't need to be better than the market Jump in! --- 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/ You can watch a free video here: https://www.trendfollowing.com/video/ Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast My social media platforms: Twitter: @covel Facebook: @trendfollowing LinkedIn: @covel Instagram: @mikecovel Hope you enjoy my never-ending podcast conversation!

My guest today is Tom Dorsey, the co-founder of Dorsey, Wright & Associates in 1987. Dorsey joined Nasdaq Global Information Services with Nasdaq's acquisition of his company in 2015. He has been a regular guest on Fox's "Cavuto on Business" and "Bulls & Bears" programs, and frequently speaks to audiences worldwide on topics related to the stock market, technical analysis, and Relative Strength investing. The topics are his books Point & Figure Charting: The Essential Application for Forecasting and Tracking Market Prices, Thriving as a Broker in the 21st Century and Tom Dorsey's Trading Tips: A Playbook for Stock Market Success. In this episode of Trend Following Radio we discuss: View of technical analysis, with a specialization in point & figure and relative strength Dealing with a bear market in Dorsey's early days Early training in options; how Dorsey learned about point & figure trading Definitions and explanations of point & figure trading How point & figure works like a tennis match Automating your strategy The criticism of "black boxes" A third grade experiment How Charles Schwab changed the world How technology influences the technical analysis world Jump in! --- 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/ You can watch a free video here: https://www.trendfollowing.com/video/ Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast My social media platforms: Twitter: @covel Facebook: @trendfollowing LinkedIn: @covel Instagram: @mikecovel Hope you enjoy my never-ending podcast conversation!

My guest today is Marc Faber, a Swiss investor based in Thailand. He is the publisher of the Gloom Boom & Doom Report newsletter and the director of Marc Faber Ltd, which acts as an investment advisor and fund manager. The topic is economics. In this episode of Trend Following Radio we discuss: Current state of Russia Changing geopolitics Faber's experience living through the Cold War The difference between Crimea's value to the west and its value to Russia Why the Russians perceived the uprising in Kiev to be financed by western power China's reaction to the situation in Crimea; the construction boom in China The difficulty of forecasting China's geopolitical changes Positive and negative valuations of the market, and finding investments to be "cheap" or "expensive" Faber's advice to young people following his path today in the face of money printing and bailouts What can be done about wealth inequality Making a living in the face of instant communication and globalization Central banks' role in wealth inequality Why money printing leads to bubbles Warren Buffett's involvement with the bailouts, and how his government connections have helped his investments How governments are assimilating everything "Capitalism and Freedom" by Milton Friedman The cost of large government in the US and elsewhere Faber's views on relationships, contrasting the West and Asia along with Facebook fame Jump in! --- 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/ You can watch a free video here: https://www.trendfollowing.com/video/ Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast My social media platforms: Twitter: @covel Facebook: @trendfollowing LinkedIn: @covel Instagram: @mikecovel Hope you enjoy my never-ending podcast conversation!

My guest today is Martin Bergin, CEO of Dunn Capital Management. Bill Dunn and Dunn Capital were famously profiled in Covel's book Trend Following and they have a 39 year track record of trend following performance. The topic is Trend Following. In this episode of Trend Following Radio we discuss: The early stages of Dunn Capital, and how it arrived where it is today Trend following with futures Volatility within Dunn's system, and why volatility is important to the overall performance Targeting losses How history informs system creation Adapting to the marketplace and to available technology What it means to be 100% systematic with no overrides Defining "black box" systems, and the difference between Dunn Capital's strategy and black box strategies Location in relation to Dunn Capital, and why it isn't necessary to be in a big city like London or Tokyo How the core of Dunn Capital has stayed the same while certain aspects of business has evolved Decreasing drawdown without decreasing profitability Behavioral finance and dealing with biases The adaptive nature of trend following Predictive vs. reactive trend following Dunn Capital's fee structure Jump in! --- 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/ You can watch a free video here: https://www.trendfollowing.com/video/ Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast My social media platforms: Twitter: @covel Facebook: @trendfollowing LinkedIn: @covel Instagram: @mikecovel Hope you enjoy my never-ending podcast conversation!

My guest today is Howard Lindzon, a Canadian entrepreneur, author, financial analyst, technical analyst and angel investor. Lindzon manages a hedge fund, serves as managing partner of the holding company Social Leverage, limited partner at Knight's Bridge Capital Partners, and is the co-founder of StockTwits. He's also known for the satirical podcast Wallstrip. The topic is entrepreneurship. In this episode of Trend Following Radio we discuss: The commonalities between the angel investing world and trend following Over-diversification Diversification in private investments vs. stocks How Lindzon got the entrepreneurial "bug" Lindzon's early career as a stockbroker The beginnings of Wallstrip Lindzon's comedy influence How Wallstrip led to the next four years of Lindzon's investments How Lindzon's mistakes helped him grow as an investor Lindzon's experience with fraud committed by a business partner Keeping your business drama-free The issue of distraction Lindzon on the birth of StockTwits The investment that changed Lindzon's financial life in 2005 The future of StockTwits as Lindzon sees it Social leverage The art of curation and verticalization Thinking of the financial web as a social bank account Jump in! --- 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/ You can watch a free video here: https://www.trendfollowing.com/video/ Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast My social media platforms: Twitter: @covel Facebook: @trendfollowing LinkedIn: @covel Instagram: @mikecovel Hope you enjoy my never-ending podcast conversation!

My guest today is Victor Sperandeo, known as "Trader Vic", a US trader, index developer, and financial commentator. He serves as the President and CEO of Alpha Financial Technologies, LLC (AFT), is a founding partner of EAM Partners L.P., and serves as the President and CEO of its general partner, EAM Corporation. The topic is trading. In this episode of Trend Following Radio we discuss: Recent public policy directions Trading against your public policy interests Zero interest rate policy Whether the S&P is a "bribe" The Fed mandate to keep stocks from falling and to stop volatility The wealth effect Why the stock market going up is a very poor instrument to fix the economy The trend towards socialism Sperandeo's experience working with George Soros Sperandeo's experience with the DTI index lack swans and the effects of large, catastrophic events on the market; why the only way to protect yourself is extreme diversification; volatility balancing; and Sperandeo's experience as a young man and how he came into the trading world Jump in! --- 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/ You can watch a free video here: https://www.trendfollowing.com/video/ Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast My social media platforms: Twitter: @covel Facebook: @trendfollowing LinkedIn: @covel Instagram: @mikecovel Hope you enjoy my never-ending podcast conversation!

My guest today is Carl Richards, a Certified Financial Planner and creator of the Sketch Guy column, appearing weekly in The New York Times since 2010. Carl has also been featured on Marketplace Money, Oprah.com, and Forbes.com. The topic is finance. In this episode of Trend Following Radio we discuss: Richards' new radio venture How Richards came to start The Behavior Gap Outliers, and living your own bell curve Risk on a daily, weekly, and monthly basis The definition of radical self-awareness Mindfulness and awareness as applied to our financial decisions Habit, action, feeling, and thought Simplicity and effectiveness Government intervention in the markets Quantitative easing Buy and hold in Japan Loss aversion and the pain of loss Feeling loss more than the joy of gain Jump in! --- 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/ You can watch a free video here: https://www.trendfollowing.com/video/ Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast My social media platforms: Twitter: @covel Facebook: @trendfollowing LinkedIn: @covel Instagram: @mikecovel Hope you enjoy my never-ending podcast conversation!

My guest today is Sam Polk, a former wall street banker who walked away after making millions. Today, Polk runs a non-profit to help the poor understand nutrition. However, his op-ed is definitely controversial. The topic is his op-ed For The Love of Money. In this episode of Trend Following Radio we discuss: The intensity surrounding the reaction to Polk's op-ed piece Reactions from friends and colleagues about the article Envy and jealousy in the Wall Street world Polk's background and life growing up Filtering cultural messages The line between individual responsibility and being part of a system Crony capitalism Power dynamics The mythology of risk-taking in America The solution for the investment banks out there Polk's non-profit which he runs today Jump in! --- 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/ You can watch a free video here: https://www.trendfollowing.com/video/ Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast My social media platforms: Twitter: @covel Facebook: @trendfollowing LinkedIn: @covel Instagram: @mikecovel Hope you enjoy my never-ending podcast conversation!

Please enjoy my monologue Risk, Reward and The Process with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive. --- 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/ You can watch a free video here: https://www.trendfollowing.com/video/ Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast My social media platforms: Twitter: @covel Facebook: @trendfollowing LinkedIn: @covel Instagram: @mikecovel Hope you enjoy my never-ending podcast conversation!

My guest today is Jack Schwager, a recognized industry expert in futures and hedge funds and the author of a number of widely acclaimed financial books. Schwager is one of the founders of Fund Seeder. Previously, he was a partner in the Fortune Group, a London-based hedge fund advisory firm. His prior experience also includes 22 years as Director of Futures research for some of Wall Street's leading firms, most recently Prudential Securities. The topic is his book The Little Book of Market Wizards. In this episode of Trend Following Radio we discuss: How Fund Seeder acts as a liason for traders and investors The difficulty of starting out as a new trader How Fund Seeder is a global opportunity Schwager's last book, Hedge Fund Market Wizards The timeless quality of the Market Wizards books Jesse Livermore's Reminiscences of a Stock Operator How human nature is the only thing that will never change Looking for a "secret recipe" in the Market Wizards book "The Upside of Down: Why Failing Well Is The Key To Success" by Megan McArdle Why failure is smart and an essential part of success The importance of failure in the context of education Behavioral economics Jack Horner and thinking outside of the box The importance of loving what you do for a living The importance of travel Jump in! --- 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/ You can watch a free video here: https://www.trendfollowing.com/video/ Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast My social media platforms: Twitter: @covel Facebook: @trendfollowing LinkedIn: @covel Instagram: @mikecovel Hope you enjoy my never-ending podcast conversation!