Says Michael Covel, one of the loudest voices regarding trendfollowing in the online space. His podcasts are worth gold, you could probably just educate yourself to become a successful trader by following his interviews. He does not only get successful traders, such as Salem Abraham, Tom Basso or David Harding on his show, his podcast also featured Daniel Kahnemann, Vernon Smith and Harry Markowitz, all Nobel Prize winners. This way Covel is able to give insight into a wide variety of subjects. All of them are more or less closely related to trading, which opens the listeners’ eyes to what trading really is.
In the end it all boils down, again and again, to your psychology, risk management and trading systems – exactly the topics which this blog focuses on.
If you are really serious about your trading, you know where the difference between you and the next guy, who plays the lottery, lies. While you focus, calculate, observe and then execute your plan in a disciplined and emotionless manner, the guy playing the lottery does so because he thinks that luck, fulfillment, financial prosperity and happiness will just come to him. He seems to live by the idea that someone will just give something to him, for no reason. He has not understood that in life you must work hard to achieve your dreams, i.e. trading success, and that no market or anyone person will come to you and simply give you what you wish for.
This idea is what bothers Covel very much, too. In the following clip you can see interesting bits and pieces of interviews from state officials, Covel himself and others that will explain more closely, why the lottery really is a stupidity tax!
This is an excerpt from his film Broke – The New American Dream.