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Ep. 250: Hersh Shefrin and Arvid Hoffmann Interview with Michael Covel on Trend Following Radio
Ep. 250: Hersh Shefrin and Arvid Hoffmann Interview with Michael Covel on Trend Following Radio
ratings:
Length:
63 minutes
Released:
Jun 21, 2014
Format:
Podcast episode
Description
Michael Covel speaks with Hersh Shefrin and Arvid Hoffmann on today’s two-part podcast. Hersh Shefrin has done pioneering work in behavioral finance and is the author of Beyond Greed and Fear. Hoffmann is a colleague of Shefrin. He is a Professor of Finance at Maastricht University in the Netherlands. Shefrin and Hoffmann’s paper, Technical Analysis and Individual Investors, came out February 2014. The paper is concerned with short-term technical analysis and retail traders. Covel and Shefrin discuss how Shefrin came to know that behavioral finance was his path; the two-system framework; the connection to behavioral and eating disorders; the disposition effect; when emotion and reason are in conflict; “transferring your assets” vs. “selling a loss”; distinguishing between rules and discretion; how we stick with rules for ourselves given the context of our humanity; the psychological pitfalls of the 2008 financial crisis; the inevitability of market crises; Minsky and Keynes; the psychology of Keynesian economics; and human ideas surrounding uncertainty. With Arvid Hoffmann, Covel discusses the paper Technical Analysis and Individual Investors; the inspiration for the paper; Hoffmann’s definition of technical analysis; the narrow focus of the paper to short-term trading; technical analysis and trend following; “invest as if the market was efficient”, and “restrict your attempts to beat the market”. Want a free trend following video? Go to trendfollowing.com/win.
Released:
Jun 21, 2014
Format:
Podcast episode
Titles in the series (100)
Ep. 20: Timothy Sykes Interview with Michael Covel on Trend Following Radio: Covel talks to entrepreneur/trader Timothy Sykes. While their views differ on trading approaches, they agree on certain base principles--especially their skeptical nature and not trusting the system. Sykes is not a trend following trader, but Covel... by Michael Covel's Trend Following