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DENNIS GARTMAN'S NOT-SO-SIMPLE (BUT MATERIALLY FEWER) RULES OF TRADING
1. Never, Ever, Ever, Under Any Circumstance, Add To A Losing
Position... not ever, not never! Adding to losing positions is trading's
carginogen; It is trading's driving-while intoxicated. It will lead to ruin.
Count on it!
2. Trade Like A Wizened Mercenary Soldier: We must fight on the
winning side, not on the side we may believe to be correct economically.
3. Mental Capital Trumps Real Capital: Capital comes in two types;
mental and real, and the former is far more valuable than the latter.
Holding losing positions costs measurable real capital, but it costs
immeasurable mental capital.
4. This Is Not A Business Of Buying Low And Selling High; It is,
however, a business of buying high and selling higher. Strength tends to
beget strength, and weakness, weakness.
5. In Bull Markets One Can Only Be Long or Neutral, and in bear
markets, one can only be short or neutral. This may seem self-evident; few
understand it however, and fewer still embrace it.
6. "Markets Can Remain Illogical Far Longer Than You Or I Can Remain
Solvent." These are Keynes' words and illogic does often reign, despite
what the academics would have us believe.
7. Buy Markets That Show The Greatest Strength; Sell Markets That
Show The Greatest Weakness: Metaphorically, when bearish we need to
throw rocks into the wettest paper sacks, for they break most easily. When
bullish we need to sail the strongest winds, for they carry the farthest.
8. Think Like A Fundamentalist; Trade Like A Simple Technician: The
fundamentals may drive a market and we need to understand them, but if
the chart is not bullish, why be bullish? Be bullish when the technicals and
fundamentals, as you understand, them run in tandem.
9. Trading Runs in Cycles; Some Good; Most Bad: Trade large and
aggressively when trading well; trade small and ever smaller when trading
poorly. In "good times," even errors turn to profits; in "bad times," the
most well researched trade will go awry. This is the nature of trading;
accept it and move on.
10. Keep Your Technical Systems Simple: Complicated systems breed
confusion; simplicity breeds elegance. The great traders we've known have
the simplest methods of trading. There is a correlation here!
11: In Trading/Investing, An Understanding Of Mass Psychology is
Often More Important Than An Understanding of Economics: Simply put,
"When they are cryin', you should be buyin'! and when they are yellin', you
should be sellin'!"
12. Bear Market Corrections Are More Violent And Far Swifter Than
Bull Market Corrections: Why they are is still a mystery to us, but they are;
we accept it as fact and we move on.
13. There Is Never Just One Cockroach: The lesson of bad news on
most stocks is that more shall follow... usually hard upon and always with
detrimental effect upon price, until such time as panic prevails and the
weakest hands finally exit their positions.
14. Be Patient With Winning Trades; Be Enormously Impatient with
Losing Trades: The older we get, the more small losses we take each year...
and our profits grow accordingly.
15. Do More Of That Which Is Working and Less Of That Which Is
Not: This works in life as well as trading. Do the things that have been
proven of merit. Add to winning trades; Cut back, or eliminate losing ones. If
there is a "secret" to trading (and of life), this is it.
16. All Rules Are Meant To Be Broken.... but only very, very infrequently.
Genius comes in knowing how truly infrequently one can do so and still
prosper.
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狗仔卡
发表于 2020-10-27 04:18 PM
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发表于 2020-10-27 08:42 PM
