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Trend Following | April 3rd, 2011

The long term trend following performance numbers are incredible.

One secret to analyzing those numbers? If your first thought is to ask what were the performance numbers for last month, stop reading now and go give your money to Fidelity for some buy and hold pipe dream. If your focus is last month first, you will fail.

If you want to know how the real trading game works, my firm can help teach you.

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DGDye

Michael,

I don’t want this to sound like a cheap plug for your course, but…just got off the phone with a friend of a friend who’s thrown in the towel on futures trading.

He and some others became aware of my humble success and wanted to copy it. I referred them to your books and even gave away a few copies of Turtles and TF.

BUT!!..I warned them this game is 90% mental. I told them they’d be riding the bucking bronco. Of course, they remained fixated on the technicals and which color of Porsche they were going to buy in a couple months with their market gains. And although they said they got TF, the didn’t. How do I know?

The guy on the phone lost his entire account — $10,000 — in 2 weeks. He said he used TF according to your books, but his final comments on the market were, “We’re running out of oil and the price went up like it should have, but not before the big guys drove it down to get guys like me out of the market.”

Doesn’t sound like TF to me; sounds fundamental. I trust your course spends lots of time going over what to do when things go against you, discipline, when to take your inevitable losses, and how insignificant each of us is to the market…you have to ride the bucking bronco, not attempt to tame it, which is impossible.

I told him he should consider your course, but he says he never wants to place another trade again. Looks like Fidelity gets another client. Too bad, he’s a smart guy (company VP and finance major)…I think he thought he was smarter than the market, though, which’ll kill you every time.

Cheers
Gene

Jesse Livermore is often thought of as a futures guy, but when he busted out (several times) he used the equities markets to build his account back up (I think he was probably also repairing himself psychologically using the eq markets).

Learn trend following now with our firm.

Books & Film by Michael Covel

- Trend Commandments Aggressive-take-no-prisoners trend following manifesto. Buy & holders might weep.
  
  Purchase | Reviews
- Trend Following Classic trend following bestseller with 100,000+ sold & now in 10+ languages.
  
  Purchase | Reviews
- The Complete TurtleTrader Nurture trumps nature in Wall Street's greatest rags to riches trading story. Bestseller #2.
  
  Purchase | Reviews
- The Little Book of Trading Behind the scenes part narrative & part interview in the spirit of Market Wizards.
  
  Purchase | Reviews
- Broke: The New American Dream Covel's directorial debut: trend following meets the financial crisis. Winners tell how (DVD).
  
  Purchase | Reviews

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Michael Covel serves as president of Trend Following™, a privately owned research firm. His trend following books include The Little Book of Trading (2011), Trend Commandments (2011), The Complete TurtleTrader (2009, 2007; bestseller), and the classic Trend Following (2009, 2007, 2005, 2004; bestseller). Covel's books have been translated into 10+ languages. His first film, a documentary, is Broke: The New American Dream (2009). Learn why.

Books & Film by Michael Covel

- Trend Commandments Aggressive-take-no-prisoners trend following manifesto. Buy & holders might weep.
  
  Purchase | Reviews
- Trend Following Classic trend following bestseller with 100,000+ sold & now in 10+ languages.
  
  Purchase | Reviews
- The Complete TurtleTrader Nurture trumps nature in Wall Street's greatest rags to riches trading story. Bestseller #2.
  
  Purchase | Reviews
- The Little Book of Trading Behind the scenes part narrative & part interview in the spirit of Market Wizards.
  
  Purchase | Reviews
- Broke: The New American Dream Covel's directorial debut: trend following meets the financial crisis. Winners tell how (DVD).
  
  Purchase | Reviews