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Michael Covel's Trend Following

Ep. 181: Fear, Snakes and Markets with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

Michael Covel

Investing, Business

4.6732 Ratings

🗓️ 11 November 2013

⏱️ 16 minutes

🧾️ Download transcript

Summary

Please enjoy my monologue Fear, Snakes and Markets 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

Click on a timestamp to play from that location

0:00.0

This is Trend Following Radio, where great thinking comes alive.

0:12.2

Nobel Prize winners, legendary traders, best-selling authors, and the pros that know what drive us irrational human beings.

0:22.4

I am your host, Michael Covell, not filtered, raw, honest.

0:28.7

That's my passion.

0:37.0

What scares us and why?

0:40.2

What's scarier, the deadly snake slithering across your path during a hike or watching a thousand-point drop in the stock market?

0:48.8

Look, both of those instill fear.

0:52.9

But researchers disagree over the nature and cause of this very powerful

0:57.3

emotion. I saw the one comment from a professor. He said, look, when you see the stock market

1:03.4

fall thousand points, that's the same as seeing a snake. It's this fear, this response to the immediate stimuli.

1:12.8

It's the empty feeling in your gut, the racing of your heart, palm sweating, the nervousness.

1:18.1

That's your brain responding in a pre-programmed way to a very specific threat.

1:24.7

And he added, since our brains are programmed to be very similar in structure, we can assume

1:31.0

that what I experience, what I'm threatened, is something similar to what you experience.

1:37.7

Now, that's not a universally held belief.

1:41.7

There is a ton of disagreement.

1:46.3

Science's ability to completely understand and described fear is elusive.

1:52.4

Hundreds of studies have been done about how bodies react to fear,

1:56.3

and there's still no way to quantify fear itself.

2:08.3

However, there's a book out, The Science of Fear,

2:14.0

why we fear the things we shouldn't, and put ourselves in greater danger. I found a quote that's very relevant to where I want to go today. Once again, snakes.

2:19.1

Quote, the rather uncomfortable feeling most of us have when we're around snakes is evidence of

...

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