The Gartman Letter’s legendary trader Dennis Gartman on Trading Rules. In this video he explains some of his trading rules and trading strategies. Watching the video will help you understand important underlying concepts behind those trading rules. The most important message he is conveying is to never ever add to a losing position. He uses the decline of the sugar price in the 70s as an example for what can happen if you average down a loser. He goes on to talk about the reasons why every major trading disaster is related to averaging down. The LTCM – Long Term Capital Management hedge fund fiasco and infamous Nick Leeson who bankrupted Barings Bank are a few examples he delves into.
Definitely one of the very best videos out there. Enjoy!
Never ever add to a losing position!
Have a great weekend!