From a reader:
Dear Michael, I’m a keen listener of your podcasts and have both of your trading books. I wondered if youd come across the quote below and if you had any view or could offer any insight into the statement. I’ve assumed rightly or wrongly that Elder is steering the reader (beginner) away from the drawdowns associated with trend following, but Im merely guessing. The subject isn’t explored in the book. The statement has put me off trend following for the time being and was hoping you could enlighten me. For information, I am a beginner trader, mostly trading indices and stocks on a spread betting platform (so far without success!). I’m also not entirely sure what he means by a later stage of development: “A beginning trader is better off learning to catch short swings, while leaving long-term trend trading for a later stage of development (Ref. Dr. Alex Elders Come into my Trading Room).” Apologies for asking you direct, rather than Dr. Elder, but given your passion for trend following I thought I would ask your advice. It kind of raises the debate, Is trend following for beginners? The Turtle story seems to contradict this theory. Best regards, Tony
Yes, the Turtles do contradict that view. My view? I view it as one sentence by one man – who is not of the caliber of the traders I write about.
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