Ep. 1375: Size It Right with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
Michael Covel
4.6 • 732 Ratings
🗓️ 2 February 2026
⏱️ 19 minutes
🧾️ Download transcript
Summary
Please enjoy my monologue Size It Right with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
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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
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| 0:00.0 | Many times when I've done events, big audience out there, and I'll ask for a show of hands. |
| 0:07.6 | I'll say, what is the percentage of your limited capital that you should bet on each trade? |
| 0:14.8 | 1%, 2%, 5%. |
| 0:16.7 | I have gotten situations before where the hand goes up at 10%. |
| 0:21.4 | Talk about not having any idea of math at all. |
| 0:26.3 | You could probably take a fourth grade kid with decent intelligence |
| 0:30.2 | without understanding anything about trading or betting or gambling or anything |
| 0:35.3 | and get them to understand in a game where you've a very |
| 0:39.3 | minimal edge that betting 10% per time per trade would be a disaster. |
| 0:47.5 | This is your path to risk of ruin. |
| 0:49.6 | It's not your setup. |
| 0:51.1 | It's not your indicator. |
| 0:52.3 | It's not your information. |
| 0:53.8 | It's not your insight. Whatever your not your indicator. It's not your information. It's not your insight. |
| 0:55.6 | Whatever your insight is, hopefully it's trend following. It's how much you bet. That's it. |
| 1:01.8 | But you know what bet sizing, as they call it, or risk management as they call it, kind of feels like, |
| 1:07.0 | I don't know what's going to happen next. Think about how many people can't handle that |
| 1:12.2 | sentence. I don't know what's going to happen next. So since I don't know what's going to happen next, |
| 1:19.1 | I will believe anybody that sounds confident with some type of bullshit narrative as long as they're standing in front of a red Ferrari |
| 1:31.3 | or an orange Lamborghini. The expensive car that sells me. In a day and age, when AI can make |
| 1:39.5 | anything, give me a picture of somebody who probably isn't even real anymore. |
| 1:45.9 | Give me a picture of a fake person in front of a fake car telling me that I can make the fake money like they did through day trading, through, I don't know, buying and holding crypto. |
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