Ep. 505: Daniel Crosby Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

Michael Covel

Investing, Business

4.6 • 730 Ratings

🗓️ 25 November 2016

⏱️ 55 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

My guest today is Daniel Crosby, a psychologist, behavioral finance expert and asset manager who applies his study of market psychology to everything from financial product design to security selection. He is co-author of the New York Times bestseller Personal Benchmark: Integrating Behavioral Finance and Investment Management and founder of Nocturne Capital. He is at the forefront of behavioralising finance. His ideas have appeared in the Huffington Post and Risk Management Magazine, as well as his monthly columns for WealthManagement.com and Investment News.

The topic is his book The Laws of Wealth: Psychology and the Secret to Investing Success.

In this episode of Trend Following Radio we discuss:

Expert discretion
Efficient market theory
The eradication of guinea worms
Human ego
Warren Buffett and his trading strategy
Passive investing
Sigmund Freud’s impact on trading
Standard deviation as a proxy for risk
Matching “the benchmark”

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.
0:21.2	I am your host, Michael Coval.
0:24.0	Not filtered, raw, honest.
0:27.4	That's my passion.
0:33.4	My guest today is behavioral finance expert, Daniel Crosby.
0:37.7	Today, we talk. His book, his newest book, The Laws of Wealth, Psychology, and the Secret
0:44.7	to Investing Success.
0:48.0	Wide ground cover today.
0:51.4	There's nothing easy about tearing apart how psychotic most of us have become when it comes
1:01.0	to investing, when it comes to our money. Daniel brings great perspective. I hope you enjoy this
1:08.5	conversation. So Daniel, let me jump right in with the big picture as I go through your work, the efficient
1:25.2	market theory. This is not something every investor knows about, but they should.
1:33.0	And I have to say that recently, probably in the last two months, I watched a video,
1:38.4	an interviewer interviewing Eugene Fama and Dick Thaler right there in the same room. A really fascinating
1:46.0	interview. As far as I could tell, they didn't agree about anything. They didn't agree about
1:51.9	anything other than they respected each other for their academic achievement, so they didn't
1:56.7	seem like they were mean or nasty at each other, but they just didn't agree on anything.
2:02.4	I would tend to think that I'm going to fall over on the Dick Thaler side more so, but he's
2:08.4	also a little bit different camp than other people. In fact, I have to be frank, he so far has
2:14.5	not granted me an interview. And the funny thing he said to me at one point in time,
2:18.6	he said, well, you know, if you like Dan Errily and you like Gerd Giggenrenzer, you won't like
	...

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