Trader Vic Methods Of A Wall Street Master By Victor Sperandeo.pdf

Master the Markets: Lessons from Victor Sperandeo’s "Trader Vic"

This book is an absolute must-read for any serious trader who wants to understand the complete picture of professional speculation. If you are looking to build a solid, risk-first foundation for your trading career, Sperandeo's philosophy is an invaluable guide. On any given trade, he never risked more

Sperandeo famously used a . On any given trade, he never risked more than 3% of his total trading capital. If he had a $100,000 account, his stop loss was mechanically set so that if triggered, the loss would be $3,000 or less. This ensures that 10 consecutive losses (a statistical possibility) only cost 30% of the account, leaving plenty of ammunition to recover. A successful trader needs a clear set of

A successful trader needs a clear set of rules, and Victor Sperandeo provides his. While he outlines 19 in his book, several core rules stand out as fundamental for any serious trader: As he famously quipped

The price makes a new high (point 1) but immediately reverses and closes below the previous high. The price then retests that new high (point 2) but fails to hold, closing back below the previous high again.

Sperandeo's entire framework revolves around controlling risk. The perfectly encapsulates this: When an alligator bites your leg, you sacrifice the leg to save your life. In trading, if a position isn't working, you cut the loss quickly before it devours your entire account. As he famously quipped, "Anyone who enters the financial markets expecting to be right on most of their trades is in for a rude awakening".