Mark Melin and I discuss MF Global on the podcast: Take a listen.

Source: MP3.

Listen on iTunes.

Hugh Hendry (discussed in podcast episode)

Source: MP3.

In putting together my book The Little Book of Trading I had the opportunity to talk with most of the office at Sunrise Capital. Marty Klitzner was one of the first people I met with there. He was President of Sunrise. From my perspective one of his roles was clearly as gatekeeper and I later learned that he was a good deal of the business success behind the firm. Unfortunately, Marty passed away on April 14, 2012 in Del Mar, CA.

I remain always thankful that men such as Marty, men with decades of trend following experience, would give me their time and knowledge.

My recent conversation with Tim Pickering of Auspice Capital is live on iTunes. Thanks to Tim for taking the time to share his experience.

Feedback in on my recent keynote address for Market Technicians Association Annual Symposium 2012:

***

I had the distinct privilege of hosting Michael Covel, President of Trend Following, at the Market Technicians Association’s 2012 Annual Symposium. I’ve received so many positive remarks, and completely agree – his insights, and experience, are priceless. Michael’s keynote address held the audience with an engaging style and unmatched level of transparency which everyone thoroughly enjoyed.
Jeffery Lay
Author of TOPGUN on Wall Street
Connect: @jefferylay | facebook.com/jefferyelay

***

Thanks Jeff!

Note: For those not at the event I hope to post some pics soon.

He tells them what he does and that his trading method is scientific/mathematical.

They then ask for a forecast.

My conversation with trend following pioneer Tom Basso, featured in The New Market Wizards, is live on iTunes.

It’s free. Listen if you are awake. Listen if you still have a pulse.

Or you can take the blue pill and go back to your narcoleptic video game coma. What does that mean? If it applies to you, you know.

Note: MP3 also here if iTunes is delayed or not showing yet.

TREX of trend following?

Lots of questions and comments in from the last week.

Question #1:

Hi Michael, how are you? I really enjoyed your presentation at the MTA conference last week. I am interested in catching up on the phone sometime. I am a PM at [fund name] in Boston, covering energy and materials sectors for our global equity fund. I am mostly technically oriented but also use fundamentals to pick stocks. Have been interested for a while in applying trend following techniques from the CTA world to the long-only equity world. This is something we have been doing implicitly, and probably many others do as well, but I wonder if more explicit/rules-based tactics and strategies might yield better results. Anyway, hope you’re doing well and to catch up soon, [Name], CMT, CFA

Answer: Doing pretty well actually after 12 days on the road! To your questions: I try to give a ton of inexpensive insight in my 4 books, but for those investors/traders who need more personal hands on instruction, my teaching/consulting is best accessed here. Feel free to give me a call to discuss options.

Question #2:

Hello Michael, I have just recently subscribed to your podcast episodes. I have found particular insight and inspiration from your conversations with Charles Faulkner and Nick Radge (listen to audio here). I really appreciate your thought provoking and candid effort in making these traders experience available. Kind regards, Jim

Answer: Thanks Jim. Stay tuned for more new interviews this week!

Question #3:

Mike, First things first: I have tried numerous investment programs, read a lot of books specifically about Buffet’s strategy, in which your strategy sort of goes against. I made some money, but not the big money. Will this program teach me how to make BIG money? In short, Mike I am in the military. I do not make a lot of money. $2,995 is a lot of money to spend in one shot. I know this is your program and you have the up most faith in it. Very important questions:

1. What is the difference between this program and any other investment program?
2. Do I have to wait a long time to make the BIG money?
3. Once I complete this program, do I have to pay/enroll/subscribe to other events/programs, etc.? This happened to me when I paid a lot of money to attend a seminar, then the purpose of the seminar was to sell additional events. I want to begin to make money and not constantly spend it.
4. What is the quality of people that I will have access that will assist me in the new trader program?
5. Is it easy to learn, do, excel at, most importantly, will I make big money?
6. Can anyone learn these skills?
7. Finally, who would you recommend me to study, learn about, read his material regarding investing in the stock market other than you?

Mike, once again, this is a lot of money to spend. I understand that it is for a lifetime education in investing, however, will this program be worth it. Your honest opinion in answering these questions is greatly appreciated in advance. Thank you Mike. Respectfully submitted, Solomon P.S. Who is the biggest trader that Tony Robbins talks about helping in his program?

Answer:

1. Specific differences are described here:

http://www.trendfollowing.com/about.html
http://www.trendfollowing.com/new_2997.html

Feel free to follow-up. You are asking me to compare to a blank slate of everyone else. I am not everyone else, nor do I follow what everyone else does or says (i.e. that is clear across my books). My 15+ year research process involved: Direct mentorship from great traders. Interviews. Intelligence. FOIA. Moxie/intuition. The right books. The wrong books. Online connections from random insiders. All pieces of the puzzle. All connected seamlessly now.
2. You have seen examples of trend following performance in my books. No one can promise you instant riches. If they do, run.
3. No.
4. It all runs through me. I make sure of quality. It is my firm and brand.
5. Our materials and support cater to many different investor types. We adjust to our students. See my response #2 again too.
6. Yes.
7. The men in my books [like in] “Trend Following” (chapter 2) and all in “The Little Book of Trading”. That’s it.

Our tuition is a small price for students to get a leg up on other investors. You can acquire the information/training I have assembled perhaps elsewhere, but the question for you? How much time will it take you. We save students time. Another issue? Support. One answer to your unique question is worth what? If we can make a difference in your life, give you top ideas and strategies, and move you forward, you are not looking at your watch and wallet.

I believe the Anthony Robbins hint was to PTJ.

Question #3:

Mike; Just read through your book Trend Commandments twice and although at my age I don’t expect to be in the stratosphere of the gentlemen mentioned in your book the fascination is still there. I will be buying your (3) other books on the way home if I can find them. I have one basic question for you before purchasing your course. And a simple answer should suffice, what is the contents and what will it teach me in layman’s term the other thing is because I am in Indonesia today, next month could be a different story with the same shitty internet connections. Also as I am from Canada where the tax system up here is a form of thievery on an unprecedented scale. Does the course have any thing that would apply in the US but not in Canada? From what I can see you well respected and as such I would hope for straight up answers. Of course I realize that you are in the business of selling a service but reading between the lies these should be easily answered questions. I see cheaper courses but I am of opinion you only get what you pay. Regards, Lloyd

Answer: Teach you to be a trend following trader. Teach you the needed psychology to excel. Teach you trend following systems that you can use immediately that aim to make the big money by answering the following 5 questions:

1. What market do you buy or sell at any time?
2. How much of a market do you buy or sell at any time?
3. When do you buy or sell a market?
4. When do you get out of a losing position?
5. When do you get out of a winning position?

Answering those is what you need. We help get you there. More:

http://www.trendfollowing.com/about.html
http://www.trendfollowing.com/new_2997.html

Even the slowest Internet connection can get you the daily price data needed for trend following day to day. Our training is for all investors all countries. Taxes are tough no doubt, but making money is a good problem to have regardless of government confiscation.

Question #4:

I have followed you for quite some time. I am currently a senior at Virginia Tech. I have been trading modestly since high school. I am interested in learning more about your student discount. VCU being mentioned on your website has sparked my interest. I appreciate any further information you are able to provide me. Davis [Name]

Answer: Davis, all of our trend following training options can be found here. You can read more here about college students trained by my firm. A 10% student discount is afforded off our Flagship.

Question #5:

Michael, I wanted to say thank you again for spending some time with me today [phone] discussing your program. You asked me to e mail you for the discount code for the Flagship Pro Trader program. If, like you said, you cover everything and all I would have to do is follow the system, I should have no problem. Being in private practice and working 60 hours/week, I am looking the best and most efficient method of success in the financial markets. Thanks again for your time and I look forward to getting started. Richard [Name] Chiropractic Sports Physician Certified Strength and Conditioning Specialist

Answer: Richard, you can obtain discount ordering options by sending an email.

Question #6:

Dear Michael, I’m serious considering taking your course. I have two questions:

1. Is there specific information about short selling strategies using trend following techniques and various risk management techniques for short selling?
2. What is the difference in content between the New Trader and Pro versions?
Thanks, [Name]

Answer: There are indeed specific strategies covered regarding short trading including needed risk management. The difference between the Pro and New versions is an extra module for those investors/traders who have absolutely no market experience. If you have done some trading, even if not trend following, the Pro version will be fine.

Question #7:

Mike, do you see commodity investments (Gold, silver, mining shares) as the right trend to follow now especially consider the extreme lunacy of printing money by our infamous Fed Reserve? [Name]

Answer: Regardless of Fed action, trend following makes sense. I can’t predict what the Fed will do or what their action will do to markets. As a trend follower you don’t have to know. That is some very good news for investors!

Note: Some of my answers are shorter online here compared to actual email responses that went out. I don’t want to seem too repetitive. Many of these exchanges also involved follow-up emails and or calls. Have a question? Email me.

A fun story (scroll down for video on link) about the greatest Trex fossil hunter & our like named systems.

The other day I posted a simple contrast of images that made the case for why knowing what Bernanke will do next has no bearing on trading profits. However, reliance on Bernanke, what millions do every day, is a troubling investment strategy.

Want some pretty clear reasons why trend following makes imminently more sense over trusting the Fed for your cat food retirement years? First, John Hussman makes the trend following case (though not his intention):

..investors…have to assume that they can safely speculate until some particular date arrives on the calendar and they can all take their profits simultaneously…Chairman Bernanke believes that by creating a bubble in speculative assets, people will “feel” wealthier and keep consuming – regardless of the fact that real incomes are stagnant and debt burdens are already intolerable, and despite the fact that there is extremely weak evidence for any such “wealth effect” in the historical record.

Second, these guys pile on the trend following bandwagon (again, not their intention):

The high levels of employment reached during the 2004-2007 period were achieved on the backs of the housing and debt bubbles. During that time, economic growth was boosted by 400% as a result of people taking equity out of their homes (mortgage equity withdrawal). Considering no one has any equity left in their homes to withdraw, economic growth and the jobs that come with it are going to have to find another adrenalin shot. If you know the next big thing – feel free to share it, the World needs it.

60 Minutes? They help make the case too:

Bernanke is essentially trying to pull a Bubba Watson at the 2012 Masters, except if Bubba doesn’t make the shot he finishes 2nd (not dead broke in a van down by the river):

If Bernanke screws the pooch millions who have bought into trusting the Fed as retirement gospel are going to need a permanent allowance…and we all know where that comes from, right? The tooth fairy of course.

Skip the opening acts (i.e. reliance on government cheese) if you want the opportunity at the big wealth still. Trend following will be the long term winner and the historical proof is clear. Bottom line, if you want to be distracted mute Bernanke’s seduction and go straight to Upton’s seduction.

Source: Golf shot.

I hope you enjoy my timeless archival interview with original Turtle Michael Shannon. Listen on iTunes. Also here: MP3.

Shannon was also in my bestseller The Complete TurtleTrader.