Focus on identifying and following the major trend. This involves understanding long-term market movements and positioning yourself accordingly.
Sperandeo is ruthless about defining trends. He uses a simple but powerful definition:
: The primary goal is to avoid significant losses. Before entering any trade, he asks, "What potential loss can I suffer?". Focus on identifying and following the major trend
Would you like a cheat-sheet, a sample trade walkthrough, or a backtesting checklist?
In his classic work, " Trader Vic: Methods of a Wall Street Master He uses a simple but powerful definition: :
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Once capital is secure, the focus shifts to generating steady, repeatable returns. This involves finding a statistical edge and executing it disciplined fashion, rather than gambling on "home run" trades. Pursuit of Superior Returns In his classic work, " Trader Vic: Methods
Core Principles and Mental Framework Sperandeo elevates psychology to equal footing with technique. He insists on the primacy of capital preservation: protect the downside first and let winners run. This simple-but-rigid hierarchy—limit losses, maximize gains—permeates his rules for position sizing, risk control, and trade exit. He frames trading as an exercise in probability management, encouraging traders to think in terms of expected value and to treat each position as one bet among many.