I f you’re interested in trading, and trend following in particular, Michael Covel’s Trend Following Manifesto is some good listening. Michael Covel is the author of Trend Following. Covel interviews people who are practicing the philosophy highlighted in his book. If trend following isn’t your cup of tea, but you’re still into trading, there will still be some jewels to pick up in his interviews of traders and fund managers.
I enjoy listening to the stories and philosophies of the various characters as I commute around town each day.
Covel has fairly lengthy (about an hour) interviews with these traders. They usually cover the player’s early years, how hey entered the trading field, and how they came to their present views about the markets and the psychological challenges of a game where loss is a large part of the road to winning. Most of the subjects express why they feel that trend following in the system they follow as well.
As I said before, there’s also info for those who aren’t into trend following, as many of these traders go into why systematic trading works better for them in general. They also stress the importance of risk management at length. Protecting capital is placed above achieving returns, as these traders know that the only way to keep trading is to avoid being completely wiped out.
Many also share stories of losses and how a healthy psychological state for trading gets them through these events that are statistically acceptable, but must also be dealt with, as we as humans have a had time coping with loss.
Some of the stories are pretty interesting. He interviews characters from a professional blackjack player, to an ex-drug dealer who got into trading as part of an experiment that mirrored Eddie Murphy’s role in the movie Trading places.
The Trend Following Manifesto with Michael Covel is available on iTunes. But if you prefer mp3 files like myself, you can get direct downloads from this site,