Ep. 224: Tom Dorsey Interview with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
Michael Covel
4.6 • 732 Ratings
🗓️ 29 March 2014
⏱️ 23 minutes
🧾️ Download transcript
Summary
My guest today is Tom Dorsey, the co-founder of Dorsey, Wright & Associates in 1987. Dorsey joined Nasdaq Global Information Services with Nasdaq's acquisition of his company in 2015. He has been a regular guest on Fox's "Cavuto on Business" and "Bulls & Bears" programs, and frequently speaks to audiences worldwide on topics related to the stock market, technical analysis, and Relative Strength investing.
The topics are his books Point & Figure Charting: The Essential Application for Forecasting and Tracking Market Prices, Thriving as a Broker in the 21st Century and Tom Dorsey's Trading Tips: A Playbook for Stock Market Success.
In this episode of Trend Following Radio we discuss:
- View of technical analysis, with a specialization in point & figure and relative strength
- Dealing with a bear market in Dorsey's early days
- Early training in options; how Dorsey learned about point & figure trading
- Definitions and explanations of point & figure trading
- How point & figure works like a tennis match
- Automating your strategy
- The criticism of "black boxes"
- A third grade experiment
- How Charles Schwab changed the world
- How technology influences the technical analysis world
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
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| 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. |
| 0:21.1 | I am your host, Michael Covel. |
| 0:24.0 | Not filtered, raw, honest. |
| 0:27.3 | That's my passion. |
| 0:33.1 | Today in the podcast, I have Tom Dorsey of Dorsey Wright. |
| 0:37.4 | Tom specializes in technical analysis, specifically point and figure and relative strength. A little different from my world, but in the same headspace, I think you'll enjoy. |
| 0:53.3 | Tom Dorsey. Hey Tom, Mike Covell. How are you? Tom Gorson. |
| 0:56.5 | Hey, Tom. Mike Cavell. How are you? |
| 0:59.0 | Fine. Thank you, Mike. What's up, buddy? |
| 1:01.4 | Not too much. We've never spoken before, have we? |
| 1:04.0 | I thought we had at some point in time, but maybe not. |
| 1:08.5 | I speak to probably 50 people a day. |
| 1:13.1 | Well, I figured since we were right up this technical analysis direction, |
| 1:20.8 | that it was high time that we had a conversation. |
| 1:23.3 | Sounds good. |
| 1:24.3 | So listen, let me jump into your beginnings. |
| 1:28.4 | So Dorsey Wright, and I'm going to let you explain your strategy and your thinking. |
| 1:33.5 | But what I'd love to do is maybe the firm was started in 1987. |
| 1:37.9 | So when did you first? |
| 1:41.1 | Maybe you could go back to your early beginnings of markets, how you got introduced, |
| 1:46.1 | and maybe how you came at the idea of technical analysis, how you often point out the idea |
... |
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