More great lessons and trend following trading wisdom from Michael Covel‘s book: ‘Trend Following – Learn to make millions in up or down markets’. I am quoting from page 282-283:
Fortune Favors the bold
Trend following, like any entrepreneurial endeavor, demands you be responsible for yourself. Charles Faulkner emphasized the point:
‘Trend trading and even trading in general isn’t for everyone. As too few people check out what the day-to-day life of a trader is like, and trend trading specifically, I strongly recommend they find out before making a life-changing commitment.’
What does ‘life-changing commitment’ involve? You commit to not wanting to be right all of the time. Most people, let’s face it, must be right. They live to have other people know they’re right. They don’t even want success. They don’t even want to win. They don’t want money. They just want to be right. The winners, on the other hand, just want to win.
What else can you do? You commit to patience and faith in a trading system that is not structured on quarterly performance or some artificial measure of the ‘mass’. You work hard to gain experience. Great experience leads to great intuition. You commit to thinking for the long term and not feeling insecure if you don’t have a steady earnings stream of 1-2 percent a month. You might have one year where you are down 10 percent. The following year you might be down 15 percent. The next year you might be up 115 percent. If you quit at the end of the second year, you will never get to the third year. That’s reality.
Although I am not completely done reading the book I have already quoted from it quite a few times. I have decided to add Michael Covel’s book to my recommended books. Great insights and timeless trading wisdom. I recommend it.
He who establishes his argument by noise and command, shows that his reason is weak. – Michel de Montaigne
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