Unlike many modern technicians who ignore the news, Sperandeo is a disciple of Austrian Economics. He believes that to trade successfully, one must understand the macroeconomic environment, specifically the relationship between money supply and inflation.
To spot a trend reversal (such as from a bull market to a bear market), the following three criteria must be met:
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Treat losses as a necessary business expense, like rent or inventory. Unlike many modern technicians who ignore the news,
High returns are meaningless if they come with catastrophic risks. Sperandeo advocates for steady, repeatable gains achieved by managing risk-to-reward ratios on every single trade. Pursuit of Exceptionally Large Returns
: The long-term macroeconomic trend lasting from several months to many years (bull or bear markets).
This public link is valid for 7 days and shares a thread, including any personal information you added. This link or copies made by others cannot be deleted. If you share with third parties, their policies apply. Can’t copy the link right now. Try again later. High returns are meaningless if they come with
The blueprint for this remarkable consistency is laid out in his 1993 classic, Trader Vic: Methods of a Wall Street Master . For those seeking the PDF version to study his methods, the book remains a vital resource—a manual that bridges the gap between dry economic theory and the gritty reality of price action.
To achieve this, Sperandeo introduces a mental framework known as the . The concept is based on an alligator's eating habits: if an alligator bites your foot, you struggle, and the more you struggle, the more it consumes you.
Another famous technical setup from the book is the , which exploits false breakouts. It occurs when the market makes a new high or low, but lacks the momentum to sustain it, quickly reversing. This public link is valid for 7 days
Sperandeo famously stated, “If you don’t know when you’re wrong, you don’t know when you’re right.” His most practical contribution to trading psychology is his rigid risk framework.
Provide a of the 1-2-3 Method on a specific asset chart.
He explains the use of moving averages as a tool to gauge market trends and potential reversal points.
Price breaks out above a valid, downward-sloping trendline drawn from the highest peak.