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Feedback in:

Thanks for all the good content Mike.

I’m interested in the risk mgmt piece. Can you cover how to calculate a good stop loss level for a particular stock? What factors or series of questions will help you establish a sound, dialed-in percentage level?

Thanks.
Mark P.

I give step-by-step solutions that answer:

Portfolio: What market do you buy or sell?
Bet Sizing: How much of a market do you trade?
Entry: When do you buy or sell a market?
Exit: When do you exit a losing trade?
Exit: When do you exit a winning trade?

So the last thing I want any one to do is focus only on the stop. It’s more than that.

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How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

Also jump in:

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Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

Feedback in:

Hi,

Recently bought your book as a holiday treat to myself.

I already own all books by Van Tharp and I’m motivated to find “my trend following system.”

Still 1 year in progress, it’s a hard, mental, and intelligent challenge.

I keep questioning myself if it is even possible to beat the market. YTD (2024) I’m only up 12.5% while S&P500 is approx. 19% (12/07). My partner’s account, which I only suggest her which ETF to buy once a month, is at 19.5% YTD!

So basically with all the time spent I don’t get anywhere (against my 2 benchmarks; the index and a buy and hold ETF philosophy).

Main problem is how to define trend. What is a trend and what is not? I want to make myself richer not my brokerage firm which for now I think I’m doing. I’ve got a big loss in Nike from which I could not part until it was finally down 35% (Auch).

Backtesting my system I’m about 40% – 60% (so not even 50%) with wins averaging 1.8 times averaging losses.

I’ve got a university degree so I’m not dumb (or perhaps I am).

I found out about your website so now I need time to explore that even more.

Always reading and testing but it is getting frustrating.

Any help/insights would be great.

Kind regards,
Steve V.

Your exact system and time frame now? How have you selected a portfolio? I don’t understand the trend focus. Entries. Exits. That’s the issue. Not trying to measure a trend before it happens.

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How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

Also jump in:

• Trend Following Podcast Guests
• Frequently Asked Questions
• Performance
• Research
• Markets to Trade
• Crisis Times
• Trading Technology
• About Us

Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

Subscribe to Trend Following Radio on iTunes

Please enjoy my monologue The Power of the Mind with Michael Covel on Trend Following Radio.

Listen to this episode:

• Listen to this podcast on iTunes. (Please leave a rating!)
• Listen on Spotify.
• Libysn RSS.
• Download as MP3 by right-clicking here and choosing “save as.”
• Free Video.

Want to learn more Trend Following? Watch my video here.

Feedback in:

Hi Michael,

Please check out this video and let me know your honest opinion. It explains everything.

Many thanks in advance!

All The Best,
David H.

I see a lot of Richard Dennis language, but I’m not hearing trend following strategies. Cash flow and income language are not what I expect to hear when speaking of trend following. What are the exact rules here?

This may not be what you are looking for. And perhaps this isn’t technically “trend following” but just a simple way of achieving profits using the 4 simple rules and 2 simple keys.

Here are the rules for entering a call option— when both upper and lower (MACD) blue lines cross above the red lines, and the rule for exiting a call option is when at least one blue line crosses below the red line.

Similar but reversed for put options— enter when both upper and lower (MACD) blue lines cross below the red lines, and exit when at least one blue line crosses above the red line.

I know that’s over-simplified, but it’s the gist of it.

Thoughts?

How long are these trades? What is risk management? What is position sizing? How are markets selected? I believe you know you need a complete understanding, hence why you are texting me. My steps are here.

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How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

Also jump in:

• Trend Following Podcast Guests
• Frequently Asked Questions
• Performance
• Research
• Markets to Trade
• Crisis Times
• Trading Technology
• About Us

Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

Feedback in:

Michael,

My business partner and I have been primarily focused on crypto markets for the past 5 years and have both had a good amount of success without formal strategies. We’ve been working for the past few months on formalizing/systematizing our approach with the goal of eventually launching a fund. One of our pillars will be trading the more liquid tokens in the market; wanting to understand more about systematic trading approaches, I found your TF book and was blown away. Guys like Kahneman and Thaler always made more sense than the traditional economists and your book really brought it together for me.

We have a long way to go, but I’m looking at your site and seeing options for training programs. Given our specialization, our first step is figuring out if the market structure of crypto lends itself to TF strategies (Assets too correlated? How can we identify if an asset class has the liquidity we would need?). We’d be open to paying for some consulting services or jumping into a training program, but any thoughts on what might be a good fit are greatly appreciated.

I truly appreciate the time you took to read this note.

[name] C.

You are welcome!

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How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

Also jump in:

• Trend Following Podcast Guests
• Frequently Asked Questions
• Performance
• Research
• Markets to Trade
• Crisis Times
• Trading Technology
• About Us

Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

Feedback in:

Hello Michael,

I have a difficult time staying with my positions because of all the volatility and lack of trust in the system. I’m retired and know the market is the best option for long term returns but am scared of all of the market manipulation and money printing by the Fed. I have read reports of a pending market meltdown probably coming in the near future. As a result, I’m reluctant to put much money to work at any time.

Brooks F.

Build trust. Start here.

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How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

Also jump in:

• Trend Following Podcast Guests
• Frequently Asked Questions
• Performance
• Research
• Markets to Trade
• Crisis Times
• Trading Technology
• About Us

Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

Subscribe to Trend Following Radio on iTunes

Please enjoy my monologue Questioning Trends with Michael Covel on Trend Following Radio.

Listen to this episode:

• Listen to this podcast on iTunes. (Please leave a rating!)
• Listen on Spotify.
• Libysn RSS.
• Download as MP3 by right-clicking here and choosing “save as.”
• Free Video.

Want to learn more Trend Following? Watch my video here.