Trend Following Mindset: The Genius of Legendary Trader Tom Basso

by Michael Covel

Overview

Trend Following Mindset brings to life the timeless conversations between Tom Basso and Michael Covel originally featured on Michael’s renowned Trend Following podcast. In these profound and enlightening exchanges, Tom shares with Michael his deep wisdom on trading, business, life, and the how and why of his mindset.

Tom Basso, dubbed Mr. Serenity by Jack Schwager, is one of the most experienced and knowledgeable trend-following traders in the world today—a trading legend who lives life to the fullest.

Tom’s most important trend following research papers are presented together for the first time, delivering a treasure trove of trading insights.

Michael also pulls from Tom his perspective on: How to get started in trading; What trend following is, and how and why it works so well; Constructing your trading system; Position sizing and account management; The work-life balance of a trader; The transition from independent trader to professional money manager; and so much more.

Trend Following Mindset will teach you the mindset of one of the great trend followers. Most important of all, it will show you how to do as Tom does … and enjoy the ride.

Product Details

ISBN-13:	9780857198143
Publisher:	Harriman House
Publication date:	04/20/2021
Pages:	220
Product dimensions:	6.35(w) x 9.30(h) x 1.00(d)
Age Range:	16 - 18 Years

About the Author

Michael Covel teaches beginners to seasoned pros how to generate profits with straightforward and repeatable rules. Best known for popularizing the counterintuitive and controversial trading strategy trend following, he is the author of five books including the international bestseller, Trend Following, and his investigative narrative, TurtleTrader.

Michael’s top-ranked podcast launched in 2012 has over ten million listens and 1,000+ episodes including interviews with Nobel Prize winners Daniel Kahneman and Harry Markowitz. Michael’s consulting clients include hedge funds, sovereign wealth funds, institutional investors and individual traders in more than 70 countries. He splits his time across America and Asia.

Table of Contents

Living with "Mr. Serenity"-Foreword Brenda Russell-Basso VII

Preface IX

Part I Interviews 1

Enjoy the Ride 3

Q&A with Mr. Serenity 25

Brain Teasers 53

Travel, Politics and Catastrophic Events 70

Tools That Make or Break Us 86

Part II Collected Research and Publications 103

Adding Low Sharpe Ratio Investments Can Increase Your Sharpe Ratio 105

Algorithmic Trading Is Getting a Bad Rap 107

Currency Investing-Increasing Net Worth While Protecting Net Wealth 109

Good Trading Is Not Rocket Science 112

Some Leverage Is Good, Too Much Is Dangerous 118

Study of Time Spent in Trending and Sideways Markets 122

10 Rules to Consider When Investing Your Money 126

The ETR Comfort Ratio 129

The Value Added of Asset Allocation Combined with Rebalancing 139

Thoughts on Good Investing Psychology in the Midst of Turmoil 143

Time Stocks Spent in Up, Down and Sideways Markets (2018 Update) 144

Timing the Market Revisited 147

Risk Control System 158

Measuring Futures Volatility 160

The Logic of Trend Following and How to Improve Your Trader Psychology with Market Wizard Tom Basso 161

About the Author 186

About Tom Basso 187

Bibliography 189

Appendix: Trend Following Podcast-Selected Interviews Michael Covel 191

Editorial Reviews

Tom Basso is a living legend and Mike Covel is one of the most interesting and intelligent authors I know. The two together make this book a must read for every investor. —Mark Minervini, U.S. Investing Champion and author of Trade Like a Stock Market Wizard

Tom Basso was one of the first traders I modelled 30 years ago and he was part of our first school to train good traders. In my opinion, Tom is one of the strongest traders in The New Market Wizards in his understanding of market psychology, trend following and how to position size to meet your objectives. —Van K. Tharp, founder and president of the Van Tharp Institute

Anyone can make a lot of money without the trend following mindset, but you will never keep it. This mindset is not everything, but it's pretty close. Great work Mike and Tom! —Larry Hite, hedge fund manager and author of The Rule

Covel does it again. Another great book that tells the compelling story of rules-based trend following trading and the results of maximum diversification, taking small losses, and letting those profits run. A timeless, ageless reminder to all of us that we can't predict the future and that our intuitions and emotions are holding us back from success. Thank you, Michael. —Jerry Parker, Chairman and Executive Officer, Chesapeake Capital

From the Publisher