Ep. 901: Five Minute Bar Trading the New Vegas with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Dangers of Trend Following
Trend following gives you space to ride the bucking Bronco of the market up and down. Trend following doesn't mean I can predict a damn thing, but it means I can control my downside. This is the Daniel Kahneman thinking in the prospect theory. Wearing a mask is the same thing. You're controlling your downside by what degree? No one knows. But it's some degree and when you're facing an uncertain situation, some degree is better than no degree.
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