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Michael Covel (FT Press)

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The Little Book of Trading

Michael Covel (Wiley)

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Michael Covel (Collins)

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Trend Following

Michael Covel (FT Press)

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Broke (Film DVD)

Michael Covel

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Predictive v. Reactive

Trend Following | August 12th, 2010

You can’t predict. It doesn’t work. You can only react to market price movement. Oh sure, I don’t care much for the politics and economics I see these days (read: bailouts for everyone), but making your trading decisions off what some politician or Fed official grunts out on any given day is a sure fire recipe for major disaster or said bluntly — losing your money. How did we ever get to the point that millions of people truly believe that a bunch of suits actually care about them? Why do so many need a daddy?

Note: No vulgarity or ugly attacks. There are other places for that.

  • Trader Jim

    “How did we ever get to the point that millions of people truly believe that a bunch of suits actually care about them? Why do so many need a daddy?”

    Simple answer… because it’s easier than being personally responsible. Unfortunately the great strides we’ve made in the U.S. during the past 60 years regarding tolerance and equality have come at the cost of personal responsibility for the majority.

  • DG Dye

    Ditto…The following is generally attributed to Alexander Tytler, the Scottish essayist:

    “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world’s greatest civilizations has been 200 years.”

    Kind of sums up the current state of the US, wouldn’t you say?


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