25 min listen
Ep. 62: It Takes Two with Michael Covel on Trend Following Radio
Ep. 62: It Takes Two with Michael Covel on Trend Following Radio
ratings:
Length:
18 minutes
Released:
Sep 27, 2012
Format:
Podcast episode
Description
"It takes two to make things go right, it takes two to make it out of sight". That's a market for you. It takes you over there and me over here and we reach across to make a deal. That's what the market is: it's a bunch of hands shaking, except it's in the form of stocks or futures. Covel talks about "Pawn Stars" and how it's simply price discovery; two people coming together to find a price. Covel takes this and expands on how it's terribly complicated to get to a price. But here's the trick: except for trend followers nobody really wants to talk about how the stuff that gets to the price is waste product. The price is the smartest one out there. Covel also talks about the source of trend following profits in the zero sum game. Trend trader Dave Druz makes the case that it's the risk premium from hedgers. Covel talks about hedgers, the futures market, how it's very much like insurance in a way, and how it relates to the source of trend following profits. Covel also talks about a white paper called "The Winners and Losers of the Zero Sum Game: The Origins of Trading Profits, Price Efficiency, and Market Liquidity" by Lawrence Harris, and how it changed the direction of his own career. Special free DVD offer? Go: www.trendfollowing.com/win.
Released:
Sep 27, 2012
Format:
Podcast episode
Titles in the series (100)
Introduction: The Trend Following Manifesto with Michael Covel: Michael Covel, author of Trend Following, The Complete TurtleTrader, The Little Book of Trading, and Trend Commandments, introduces his podcast--The Trend Following Manifesto with Michael Covel. This is the first episode, the starting introduction, of... by Michael Covel's Trend Following