This is trend following radio where great thinking comes alive.

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

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

That's my passion.

Let me lay some groundwork.

David Ricardo, English political economist, often credited with systematizing economics,

one of the most influential classical economist, along with Thomas Malthus, Adam Smith,

and John Stuart Mill.

I'm going to quote from an 1838 book, The Great Metropolis, Volume 2.

You're going to see that Ricardo had some classic trading rules that never went away.

As I have mentioned the name of Mr. Ricardo, I may observe that he amassed his immense fortune

by a scrupulous attention to what he called his own three golden rules, the observance of which

he used to press on his private friends. These were never refuse an option when you can get it.

Cut short your losses. Let your profits run on.

By cutting short ones losses, Mr. Ricardo meant that when a member has made a purchase of a stock

and prices were falling, he ought to resell immediately.

And by letting one's profits run on, he meant that when a member possessed stock and prices were rising,

he ought not to sell until prices had reached their highest and were beginning again to fall. These are indeed

golden rules and may be applied with advantage to innumerable other transactions than those

connected with the stock exchange, end quote.

I mean, of course, when he says other transactions beyond the stock market,

he's talking about our lives too, our personal lives, relationships, businesses, anything.

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