“Trend following is about buying highs and selling short lows”

Michael Covel

Michael Covel is an entrepreneur best known for popularizing the controversial trading strategy Trend Following. This is an investment strategy based on technical analysis of market prices, rather than on the fundamental strength of the companies. He is the author of the bestselling classic, Trend Following: How to Make a Fortune in Bull Bear and Black Swan Markets.

Michael joins this episode to explain what trend following is for the “non-techy” people to understand. He discusses the ways to invest and access trend following to generate profits successfully. Listen to the end and learn from the boss on how and why trend following works.

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ILAB 73 Show Notes

Link:

Trendfollowing.com/blog (Blog)

http://trendfollowing.libsyn.com (Podcast)

Book:

Trend Following: How to Make a Fortune in Bull Bear and Black Swan Markets Wiley Trading by Michael Covel

Discussed:

Recommended:

ArtofFX – start with just a $10,000 account (reduced from $25,000)

Fundrise – start with only $1,000 into their REIT funds (non-accredited investors OK)

RealtyShares – try it free

Wealthfront – get your first $15,000 managed free

Betterment – get up to 1 year managed free

Time Stamps:

7:05 – How he got into trend following

11:21 – What is trend following?

16:34 – Trend following strategies

18:23 – Full-time trend following traders

19:41 – Common misconceptions on trend following

25:06 – Trend following system

27:16 – Fundamental information of companies relative to trend following

31:49 – Why trend following works?

32:19 – Who are trend following traders at the present?

34:05 – Do the no. of traders affect the success in trend following?

38:16 – Backtesting

40:04 – Most successful trend following traders

41:36 – Bull Bear and Black Swan Markets

42:54 – Ways to access trend following

49:05 – Contents of his book: Trend Following

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