My guest today is Al Abaroa, the Chief Investment Strategist at Kingsview and has been a registered broker and trader since 1993. He has seen all aspects of the investing industry.

The topic is a white paper that Abaroa wrote about trend following.

In this episode of Trend Following Radio we discuss:

• How people forget that anything can and will happen
• Why we’re seeing optimistic behavior in the market
• The similarities between the WhatsApp/Facebook acquisition and the AOL/Time Warner acquisition
• Abaroa’s wealth formula
• “Reasonable returns”
• Long term vs. short term outlooks
• The advantages of youth in trading
• Lifespan growth, and retirement
• Tom Basso and black swan events
• Looking back on major crashes
• Development and distribution as the two modalities of price
• Focusing on price action
• The Global Volatility Index
• Looking at black swan periods as a place to profit
• The asymmetrical return stream and the asymmetrical nature of trend following
• Why trend following produces returns a minority of the time
• Position sizing
• Fixed contract allocation vs. fixed fractional contract allocation and their role in position sizing
• Trend following investors and market timing
• Seeking immediate gratification in trend following investments
• Looking at trend following track records

Jump in!

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I’m MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I’m proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.

To start? I’d like to give you a great piece of advice you can use in your life and trading journey… cut your losses! You will find much more about that philosophy here: https://www.trendfollowing.com/trend/

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