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!
Related posts:
- Dennis Gartman Video- Legendary Trader Explaining His Trading Rules
- Dennis Gartman – Keeping It Simple
- Dennis Gartman’s Trading Rules List
- Strategies To Improve Your Trading Performance With Gold Mining Stocks
- Howard Lederer Video Interview – On Poker And Trading The Markets
- 60 Minutes Video On Oil And Marc Faber
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