If you are losing money in the markets, stop looking for a new indicator. Pick up Methods of a Wall Street Master by Victor Sperandeo. Memorize the 1-2-3 pattern. Internalize the 3% loss rule. And realize that on Wall Street, the master isn't the one who predicts the future; it's the one who survives the present.
If there is one chapter in Methods of a Wall Street Master that has saved more trading accounts than any other, it is the chapter on risk. Sperandeo is notoriously conservative with capital. He argues that the goal is not to make money, but to keep what you make. Trader Vic Methods Of A Wall Street Master By Victor
Victor Sperandeo’s book, Trader Vic: Methods of a Wall Street Master If you are losing money in the markets,
For those wanting a mechanical trend-following system, he outlines a simple cross of a 10-day and 40-day moving average on daily closes, combined with the 1-2-3 pattern for exits. He is careful to note that no system works forever. Internalize the 3% loss rule
He entered long. The market ticked up, then hesitated. The "noise" tried to shake him out. In the past, Elias would have closed the position in fear. But he remembered Sperandeo’s golden rule: Let your winners run, but cut your losers instantly.
Have you read Trader Vic? What is your favorite rule for managing risk? Let us know in the comments below.
Before any technical tool, Sperandeo emphasizes a trader’s worldview.