Risk Management and Psychology: The "Wall Street Master" Approach
: Sperandeo defines markets through three simultaneous movements: Short-term : Days to weeks. Intermediate-term : Weeks to months. Long-term : Months to years. Investment Philosophy & Strategy
He emphasizes that trading should be a logical endeavor, not driven by emotions or a need for glory. Why "Trader Vic" is a Superior Method Risk Management and Psychology: The "Wall Street Master"
To help apply these concepts to your current trading system, tell me:
The price makes a new high (in an uptrend) but fails to sustain it, or makes a new low (in a downtrend) but fails to create a lower low. Instead, the price makes a higher low (uptrend reversing to down) or a lower high (downtrend reversing to up). Investment Philosophy & Strategy He emphasizes that trading
To understand market movement, Sperandeo adapted classic Dow Theory into a highly actionable framework. He classifies all market movements into three distinct trends, comparing them to the motions of the ocean:
Sperandeo devoted an entire chapter to "At Least 50 Ways to Lose Money". This isn't satire—it's a systematic catalog of common trading errors: To understand market movement, Sperandeo adapted classic Dow
: In an uptrend, price rallies but fails to reach a new high; in a downtrend, it fails to reach a new low.