“Trend following is about buying highs and selling short lows”
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
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)
PeerStreet – get a 1% yield bump on your first loan
Wealthfront – get your first $15,000 managed free
Betterment – get up to 1 year managed free
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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