Ep. 117: Charles Faulkner Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

Michael Covel

Investing, Business

4.6 • 732 Ratings

🗓️ 14 April 2013

⏱️ 78 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

My guest today is Charles Faulkner, an author, trader, and international expert on modeling the knowledge and performance of exceptional individuals. He was originally featured in "The New Market Wizards" by Jack Schwager. Faulkner has a new book coming out this fall called "Higher Level Trading: The Five Stages To Trading and Investor Mastery".

The topic is trading psychology.

In this episode of Trend Following Radio we discuss:

Human behavior and the investor's psyche
How Faulkner came to put together his newest book, and the qualitative differences between the five levels of experience, knowledge, and understanding
Developing the different levels of thinking that lead to expertise, and the correct path to take to developing these skills
Preparation, effort, "doing the work", and the right way to jump into investing
Some of the commonalities between those profiled in the "New Market Wizards" book
Ed Seykota's recent statements on day trading
Behavioral economics
The idea that the less you know about something the more convinced you are that it is true--and how a little knowledge can be a dangerous thing
"Perfection seekers", variation, and letting perfection slow you down
Outliers and the potential to make a change in your thinking
Efficient markets, Vernon Smith, and bubbles
Imagery, stories, prediction, and the skill of conceiving multiple scenarios
Reducing information, and vetting your inputs to find out what information is important and what isn't
Why we are most influenced by parts of our environment that we are unaware of

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/

You can watch a free video here: https://www.trendfollowing.com/video/

Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast

My social media platforms:
Twitter: @covel
Facebook: @trendfollowing
LinkedIn: @covel
Instagram: @mikecovel

Hope you enjoy my never-ending podcast conversation!

Transcript

Click on a timestamp to play from that location

0:00.0	This is Trend Following Radio, where great thinking comes alive.
0:10.9	Nobel Prize winners, legendary traders, bestselling authors, and the pros that know what drive us irrational human beings.
0:21.2	I am your host, Michael Covel, not filtered, raw, honest.
0:27.4	That's my passion.
0:33.5	Today in the podcast, I have Charles Faulkner, and Charles was originally featured in the New Market Wizards book by Jack Schwager.
0:42.4	He has a new book coming out this fall.
0:44.6	It's not out yet called Higher Level Trading, the Five Stages to Trader and Investor Mastery.
0:52.0	As you will see in this free-flowing conversation, Charles and I cover a lot of territory.
0:58.2	And he stayed definitely above board, and I think I drifted off into, I'm not really sure where I drifted off to.
1:06.2	Maybe I didn't have enough sleep tonight.
1:08.1	But anyways, very fun conversation, as you will see.
1:19.1	Thank you. have enough sleep tonight. But anyways, very fun conversation, as you will see. Hello.
1:20.7	Hey, Charles. How are you doing?
1:22.5	I'm good. I'm good. How about yourself?
1:25.4	Well, I'm in Malaysia, and I'm trying to do all this technology
1:30.5	wizardry from 8,000 or so miles away. Well, don't they build all that stuff over there anyway?
1:40.0	Yeah, but you know what? The bandwidth thing is still an issue. We just don't have that figured out. After all these years, you would think we would have got good bandwidth. I don't necessarily know that it's Malaysian issue. It's just overall.
1:53.4	Well, I think it's a human issue that we could speak to if we wanted, that, you know, as soon as people had more bandwidth, they went, YouTube.
2:02.7	Right. So how are you doing? What's going on? You know, I should tell the audience that,
2:08.4	gosh, I think the first time we met was in 2001. That would be, if my math is correctly,
2:15.0	that's more than a few years ago. Yes.
2:18.1	Wow.
	...

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