Fidelity Magellan 40 Years of Compounding of Wealth
One of the reasons I mentor and teach trend following is that I meet all kinds of very interesting people from all over the world. I have taught trend following from Australia to India to London to Mexico.
My goal is to help students learn the power of trend following and more importantly how really tough it is. Trend following is not a weekend course and you start making millions in up markets or down markets. It takes work…it takes patience and it takes commitment.
Want to share a story from one of my mentoring sessions on trend following.
I had a trend following session with a very nice man from Vermont who had invested in Fidelity Magellan $FMAGX since 1974. He told me that he has tried to be a trader for 40 years and nothing really had workHed other than his passive investment in Fidelity Magellan $FMAGX.
After our conversation I looked at the history of Fidelity Magellan $FMAGX. The compounded results of Fidelity Magellan $FMAGX have been fantastic ( however the proverbial past performance is not indicative of future performance nor am I suggesting to anyone to invest in Fidelity Magellan $FMAGX).
However one must dig a little deeper. There have been several periods in which could easily quit. In 2008 they were down approx 48%. Wow…these guys are suppose to be experts and they lost half of my money??? Wow…In trading..anything can happen. This is why one needs to “try” to protect on the downside and have an exact trading plan.
This is what I teach…and help traders develop. Their own unique trading plan that matches their personality and risk profile.
Trend following is not easy nor is trading…however commitment..patience…a trading plan…can give one compounded rates of return…