Unlike many pure "chartists," Trader Vic believes that the markets do not move in a vacuum. He emphasizes the importance of understanding the By understanding the macro-economic environment, a trader can determine the "primary trend" of the market, ensuring they are swimming with the current rather than against it. 2. Technical Analysis: The 1-2-3 Change of Trend
Sperandeo’s methodology is built on three pillars that every serious trader should study: 1. Fundamental Analysis and Economics Unlike many pure "chartists," Trader Vic believes that
The bedrock of Sperandeo’s approach is not "making money," but rather He famously argues that if you can protect your downside, the upside will take care of itself. This risk-averse mindset is what allowed him to achieve an incredible streak of profitability over decades, including his legendary prediction of the 1987 stock market crash. The Three-Pronged Approach Technical Analysis: The 1-2-3 Change of Trend Sperandeo’s
Never enter a trade without knowing exactly where your "out" is. Conclusion The Three-Pronged Approach Never enter a trade without
One of Sperandeo’s most famous contributions to technical analysis is his definitive criteria for identifying a trend change, often called the