Going Until The Wind Changes | David Lundgren is Off The Charts
Among the many things that stood out during our conversation with David Lundgren, it was this quote: “I want to find a way to listen, and learn, and get a little bit better every day.”
This is a mindset that every trader, every human, can benefit from.
In his early days, David described himself as a “systematic researcher.” This process of discovery held sway for him, and when striking out on his own, he employed the same systematic philosophy to portfolio management and trend-following trading.
David firmly believes that “the best teacher I have ever had is the Market itself,” and “the only way to learn is to do it.”
Trend followers or those interested in trend trading will find a lot of nuggets for further meditation from our conversation including:
“Trend following is contrarian.” – doing what nobody wants to do: buy high, sell low.
“There is no such thing as trend following on the short side.” You need targets when holding a short position, which is the opposite of what trend followers do.
Expect to lose.
Misplaced Expectations - “If you are anxious about the market, it’s because you aren’t getting what you expected. Which means you aren’t listening to the market.” Traders lose due to misplaced expectations.
“When all you want to do is avoid losses, you manifest losses simply by obsessing over them.”
“In trend following, there is no target. You go until the wind changes.”
In horse racing terms, “the benefit of a trend following portfolio is you can change your horse in the middle of a race.”
These are just a handful of an overabundance of trader pearls of wisdom that were shared in this conversation with David Lundgren, please enjoy.
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