Michael Covel: News & Info.

From a reader:

Dennis and Seykota both seem to give the impression that their styles while being interviewed for Market Wizards ‘would become obsolete’ sooner rather than later. Obviously, changes in market efficiencies and inefficiencies lead one to believe that this day has in one way or anotherr come and gone, but there are still fundamentals about trend trading that can definitely be taken from all three books. Have you asked or heard from these type of upper echelon traders in recent years, with regards to the changing technology of the market environment and the affects this has had on the ability to trend trade? One must almost force themselves to be somewhat of a day trader in order to secure winnings and yet, there is always that trend that still develops and carries on for a great amount of time, whether or not the market is chopping.

There are plenty of trend traders trading their trend following methods doing quite well and have been for decades. I am not so sure anything about markets has fundamentally changed. There are still trends caused by the buying and selling among human beings. That seems eternal.

Nice research huh?

This excerpt from the wires today is interesting:

A stock bounce was hardly unexpected, though, after the Dow lost nearly 240 points Monday on worries about the sagging financial sector. Wall Street is torn: Energy prices, if they continue on their downward path, could provide big relief to consumers and in turn help the economy, but credit losses keep mounting at the nation’s major banks. The result is big swings in the market but little consistent direction. “We’re living from one piece of news to the next,” said Alan Gayle, senior investment strategist for RidgeWorth Capital Management. The market’s volatility is likely to continue unless it gets further evidence that oil prices are, indeed, on their way down, and that banks have already seen the bulk of their losses.

That poor reporter. He has to write something. He has to try and paint word pictures to explain volatility, but it is clearly a struggle for him. I am not sure how a reporter can wake up excited each day to go to a job that requires him to literally make stuff up to justify random price movements.

Even if you did not know this about Indymac their chart told you all you needed to know. Same deal as with Enron the chart was ahead of the “oh we were so shocked at the fraud after the fact revelations” curve. You can only trust the price. I know that is an un-sexy message, sorry.

I find that some Amazon reviews are often great conversation starters. Sometimes people get it, sometimes they don’t. This recent review of “The Complete TurtleTrader” offers room for discussion.

Feedback in:

Dear Mr. Covel, My name is xxx, and I am reading with much interest your book about [the] Turtle Traders. I was Pillsbury’s wheat trader in the pits from 1980 to 1983, and traded size with C&D many times. Dennis, Willis, the O’Briens, etc. You are correct - we (Pillsbury) were huge traders, and we had vast amounts of info at our disposal. Pillsbury was deadly when compared to the Cargills of the world in those days because we all had our own profit center trading accounts in addition to working the enormous commercial hedge balances. Cargill and the others had employees, but Pillsbury had traders. They did not stand a chance. At any rate, I went out on my own [and] remained a Chicago Board of Trade member, and traded wheat until 1999, but I wanted to say that you got the pits in those days right…Good job with the book.

Thanks!

Feedback from a reader:

Mr. Covel: I commented on one of your commentarys, you emailed me with a question, and I responded with was was really a half assed answer.  First, your web site is much easier for me to navigate and view - cleaner; part of this is due to my older computer, slower speed, and less then good reception.  Second, much of the commentary which you quote is helpful and germane, however, while some YOUR comments are also helpful, I find that too many are snide and totally uninformative; as though you’re playing to an audiance of “true believers” and you have to feed them a fish every so often - when that occurs you’re little better then the hacks and talking heads you disparage. I am a very rank amateur when it comes to investing/trading; very timid and rather feeling my way along. I am looking for information that will assist in how I go about what I do, and hopefully the info is void of any blarney - hard to find that. Thanks. John H.

I don’t understand why the truth needs to be sugar-coated John? Instead of throwing me generalities, wny not explain what the “snide” is and why you find it so?

Feedback in from a reader named Anne:

Hi Michael—I just wanted to let you know I picked your book ["The Complete TurtleTrader"] up at the Oak Park Library here in Illinois last week and just completed it early this morning. I can’t believe that I read every page!!!! I really enjoyed the book immensely—-I started out at the CME just before they moved to Wacker Drive—–working at the CME has never left me—heck at an early impressionable age witnessing news being made daily, money flowing freely and energy thriving in the spur of a moment who could forget an experience like that! I started off working for Lind Waldock as a runner—–my favorite pit was the S&P 500 Pit, Bobby Alpert, Harry the Hat—————I befriended a sweet frail [...] girl who used to chart for a broker called ZEN—-they were a real cool, hip partnership—-anyway she taught me how to chart. I am a believer in trends and technical trading. Shortly thereafter I hired on with the CME as a pit observer in an unknown pit—-yes something NEW—-the Euro Dollar Pit————————extremely exciting when we broke into a FAST MARKET. Anyway those were the days!! On YOUR BOOK——————–trading has never left me—-I have now moved into micro stocks—trading never ceases to amaze me—it’s unreal—-that’s all I can say and until one does it they don’t know—the HIGH of HIGHS and the LOW of LOWS— I have been on an educational spurt recently—–READING—EDUCATING—-LEARNING——your wonderful book put me in contact with my emotions from the early days—relating to your stories I know why that I continue onward when the going can get tough——regardless the stories you shared were inspirational—as you know the market is like a mistress—she’s utterly exciting,, invigorating however at times she can throw you down so hard you are left gasping——–I am thankful I know more today then yesterday—-I am determined to make it as a trader-a humble trader——-what I find most difficult about trading is PATIENCE and CONFIDENCE——I recently had a patience exercise when I missed out on a $32,000.00 win with the stock GCOG——I made money however I needed the $32K win—-on Confidence I must say these days in the market you start to wonder——AGAIN I thank you for your book—YES—-SUCCESS is achievable and heck Your TURTLES are a prime example of REALITY I have recommended your book to others and I will be excited to visit the library next to check out your other writings!! Happy FRIDAY and Keep Making that MONEY!!

I welcome feedback and or reviews of “The Complete TurtleTrader” here on this site and also here at EliteTrader.

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.