Trading is trading, and the name of the game is increasing your wealth. This is of utmost importance to new traders, who are often told, Do your research. This is good advice, but should be considered carefully. Donchian wisdom from 20 years ago is just as fresh today. Consider this excerpt from Forbes For decades Donchian toiled over his price charts first for stocks, later for commodities hoping to hit on the magic formulas that would guarantee trading profits.
Then, when he was about 66, his system began to click. In he persuaded a small Hartford broker to lend him some capital and a desk to trade shares in Auburn Auto, the Apple Computer of its day.
Auburn eventually folded, but Donchian made a few thousand dollars on the strength of good timing. In an interview Ed Seykota cited his influence:. So how did you get introduced to technical analysis? I tried varying the parameter sets and found that other combinations also worked. I noticed that longer-term smoothing worked pretty well, while transaction costs seemed to chop up shorter-term systems. Review trend following systems and training:.
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Check out my epic release: Revised and extended with twice as much content. Subscribe and receive Market Wizard video. His account dropped below zero following the stock market crash. He began his market career as a stock analyst in the s.
Served as a cryptanalyst. The intent of his trend following ideas was not to forecast prices but to provide a simple, foolproof way to get onboard important trends. Did not start trading his trend following system until age Traded into his 90s. He personally trained many traders in the art of trend following. He trained many women at a time when women were second fiddle on Wall Street. In an interview Ed Seykota cited his influence: Trend Following Products Review trend following systems and training: Michael Covel Trend Following Products.
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