Michael Covel: News & Info.

Regarding your recent post about the trader who claims to be a trend follower, but then tries to bait you into claiming something negative about trend following – I’m not sure what to make of these people, but, as a trend follower, I am pretty happy they are around – after all it’s their doubts and fears that fuel my next potential gains – it’s their indecisiveness, their need to change, find the next new system that “works” – it comes back to human nature and discipline – the need to be right is so strong in so many – and the discipline necessary to stick with a sound trading system is so difficult for so many – otherwise your “hall of fame” of trend followers would 40 pages long – all I need to do is look at the charts for the past year – hmmm – copper – got it – trend – check – silver – got it – trend – check – sugar – got it trend – check and look at that – sugar again right now has been trending down – got it – trend – check – oh yeah – orange juice – and ummmmm – oh yes the 5 yr note – cattle – hogs – there have been and are trends going on right now – I have 14 positions on and some of them are into a trend and others may be starting a new trend and others may turn around for losses – I DON’T KNOW – but I do know my downside on each of these positions and I do know that I had some tough months of returns in may, june, july – and I am relatively new to this – my longest account has only been active for 14 months – is trend following dead? – If trends cease to exist then markets cease to exist, then there is no game except selling volatility, then everyone gets into that and their heads get taken off and then when everyone walks away, the trends come back and over and over – supply and demand – cycles- get back in – who knows – its uncertain – embrace it! - I have a ton to learn and that will always be the case and no matter how much I think I know, I will never know where the market is going … but I will know what to do when it gets there (I think that was a Bill Eckhardt line, in some shape or form).