Practical Lessons from Jerry Parker
Manage episode 449389008 series 3614383
In this episode, we dive deep into the world of trend following with legendary trader Jerry Parker. We explore key insights from our previous interviews with Jerry on Excess Returns, discussing his experiences as one of the original Turtle Traders and how his approach has evolved over time. We cover several important topics, including: - The challenges of sticking to a trading system, even when you're trained to follow it. - Jerry's goals for his portfolio and how they've shifted from growth to preservation as he's become successful. - The unique return profile of trend following strategies and why they can be difficult for investors to stick with. - How Jerry has adapted his strategy over time, moving from shorter-term to longer-term trend following. - The importance of allowing winning positions to run and Jerry's unconventional approach to position sizing. - The difficulties in evaluating a trading system and the dangers of making changes based on individual trades. - Jerry's thoughts on retirement and why he plans to continue trading for as long as possible. Throughout the episode, we relate Jerry's experiences to our own work in investing and financial planning. We discuss the parallels between trend following and other investment strategies, highlighting the universal challenges of sticking to a system and evolving it appropriately over time. We also explore broader themes like the nature of retirement in today's world and how to think about saving and investing for the future. This conversation with Jerry Parker offers valuable insights for traders, investors, and anyone interested in the psychology of successful long-term investing.
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