Michael Covel: News & Info.

An ad I pulled from the net:

Someone must have a nice critique of this?

On one side you pay and the other side you make.

From a reader:

Hi, Michael, The book, Complete TurtleTrader was exellent insight into a trading methodology, that for the wise, can create a systematic pattern of growth, personal freedom, independence and wealth. The context of which applied to life mirrors the same patterning effect. I will look forward to your other work - Trend Following - and have suggested the Complete TurtleTrader to friends. I am in the process of my own trading construct and development process to which I would like to seek the insight of Rich Dennis (The “rich dentist”). Reasoning, I only choose books to read when “something” calls to me to visit the book store. I drive, park, enter and begin to stroll through the aisles….ALWAYS….a book will call to me and present itself to me. At that moment it is the choice, action, “divine” guidance that leads me to a text that brings me to another level of growth in the path of life. Such as what happened with your book at the time I was enduring a tumultuous entry into the trading world only a five months ago. Now, every day something in my gut tells me there is a purpose to seek Rich that begins with trading but extends to a deeper sense of purpose on issues that face individuals, the nation, the global community, and the undercurrent of transformation in these times that began as small seeds of change which continues to grow on all those levels. I would like to be able to begin a coorespondance with Mr. Dennis but he seems to be difficult to locate. If you have availability to contact him would you pass this along and perhaps he would be interested in contacting me. Or if it is prudent, would I be able to have his contact information so that I may contact him personally. If you could assist in any way it would be greatly appreciated. Likewise, if there is anything I could do for you, please let me know. Thanks and all the best.

As my readers can tell I have cultivated an interesting and diverse Rolodex. That is only the result of putting in a whole bunch of time. That said, it is best in my opinion that each person go through the process of finding that “someone” they want to talk to. Going through that process is a learning adventure perhaps just as illuminating as the ultimate conversation you seek.

An academic using his connections to pass money around is supposed to be a surprise? Why is that?

From a reader:

Hello Michael. I am a regular reader of your blog and website, and owe it to you for correcting all my psychology towards the market. Trend following taught me to look at things from a rational and objective way. And for that I am thankful. I thought you may find this interesting, I am a resident of Karachi, Pakistan. The Stock exchange has lost more than 27% in the past month. Instead of liquidating their positions, what do investors do? They actually organized a protest against an “oppressive” government and demand that the government fix the situation! Unbelievable. Surely no-one thought of calling the government oppressive when the market had gone nowhere but up for the past 8 years. Now they are in trouble and want the government to bail them out. And here’s the silly part. They could have set stop losses, or better still chosen to go short, but it’s as though the average investor does not wish to think straight and ends up wanting a free lunch instead! I’m glad I can now see through it. And I’d like to thank you for doing an excellent job. Here’s the link to the news clipping. Have a nice day, Regards.

I could see US investors doing something every similar! Wait, isn’t that what they have been doing with real estate and the FED over here?

The tale that comes at the end.

An article from The Washington Post titled “How Thinking Costs You” is good stuff. An excerpt:

Four months ago, judging myself to be the next Warren Buffett, I logged on to my Charles Schwab account and did something that in hindsight was astonishingly stupid, even for my own very long roster of financial screw-ups. I clicked over to the trading page and bought shares of Citigroup. The company, like most of the big Wall Street banks then staring down the subprime meltdown, was limping along. The headlines were bad. The chatter on CNBC was pessimistic. I saw a bargain. I saw a company whose credit card bills and offers show up in millions of mailboxes every day. Just as soon as the banks got their write-offs out of the way, optimism would return to the sector. There would be more buyers of the stock than sellers. I would profit. Now here I am today: My investment is down 22 percent. And I’m still holding on to the stock. Am I, as my wife and closest friends sometimes insist, the dumbest man walking the Earth.

More.

This Van Tharp trader “test” reminds me of the Myers Briggs personality test.

From the AP today:

NEW YORK (AP) — Wall Street managed to finish an erratic session with a moderate gain Wednesday as investors found some comfort in upbeat data on durable goods orders.

Why can’t I have a megaphone to reach an audience like Yahoo Finance to say something that might actually be rooted in fact? I am so jealous! Or maybe, just maybe there is a connection between “upbeat” data on durable goods orders and the 45 point gain on the DOW today?

While in Tokyo I interviewed Lucy Craft of CBS News for my film. She had a great line while describing the financial gurus of today always so filled with promises. She called them ‘financial vaudeville‘. Good to know there are some members of the press out there seeing through the mess!