Dennis Gartman Video – Strategies For Trading Hot And Cold Streaks

by Olivier on July 11, 2009

More Dennis Gartman wisdom and more in-depth explanations of his trading rules. One part of the interview explains how to trade during hot and cold streaks. The next part stresses the importance of keeping it simple.

The last part is about the ‘Cockroach Theory‘. Gartman uses Enron as an example to show what happened to all those who lost their shirt holding Enron. It’s simple. They held on to the stock and rode it all the way down although it never gapped down. They simply held a stock that went against them. His conclusion is that it was their own fault. Check his other video which deals with the risks of adding to losing positions.

Enjoy the video!

  • Trade smaller during cold streaks. Reduce positions until profitability comes back
  • Trade big during hot streaks. Keep increasing positions until it doesn’t work anymore.
  • Keep your technical systems simple. ‘Complexity breeds confusion‘.
  • There is never just one cockroach. When bad news come out there is an endless stream of bad news that follows.

Great traders keep it simple.

Have a great weekend!

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