“Just do what you do best.”
Red Auerbach
Red’s bio can be found here.
Friends
Archive for October, 2004
Do It
Hot Hands
The relevance to trading is clear. The relevance to any probabilistic field is clear. Understand the Hot Hand in Sports.
Michael Panzner Endorsement
“At a time when the conventional wisdom is often wrong and many traditional indicators have lost their relevance, it’s good to know there is resource out there that traders can depend on. With its timeless wisdom and valuable insights on making money, Michael Covel’s Trend Following is definitely your friend.”
Michael Panzner
Author of The New Laws of the Stock Market Jungle: An Insider’s Guide to Successful Investing in a Changing World
French Translation Deal Signed
A deal to translate the book Trend Following into French has been signed.
Legg Mason Follow-up
The former Chief Market Strategist at Legg Mason offered a review of Trend Following recently. In a follow-up document he stated:
“Trend Following, by Michael Covel, is a new book gaining popularity among investors. The book is challenging to the methods of conventional portfolio strategy. We point out the similarities in the approach of trend following and the PPS model.”
Download Legg Mason Report on Trend Following and their PPS Model.
Request for Insight
I spoke before a group of fundamental-based analysts and money managers at a major investment bank recently. While almost entirely fundamentally driven in their daily actions, this group was eager to see into the “trend following mindset”. As Wall Street moves forward and continues to distance itself from the dot-com bubble, those willing to entertain new ideas and questions old assumptions will br the winners.
From my perspective there are many problems with fundamental analysis. Edwards and Magee argue the cons to such analysis:
“Of course the statistics, which the fundamentalists study, play a part in the supply-demand equation - that is freely admitted. But there are many other factors affecting it. The market price reflects not only the differing value opinions of many orthodox security appraisers but also all the hopes and fears and guesses and moods, rational and irrational, of hundreds of potential buyers and sellers, as well as their needs and their resources - in total, factors which defy analysis and for which no statistics are obtainable, but which are nevertheless all synthesized, weighed and finally expressed in the one precise figure at which a buyer and a seller get together and make a deal
Terror Futures
Granted, this was debated some last summer, but this article on “terror futures” is still great food for thought. Download PDF here.
HedgeStreet Articles
Two articles discussing the new exchange HedgeStreet.com:
Some other innovative exchanges include:
Of course before trading new instruments, always best to check for liquidity.
