Would you like to know more about specific trading strategies or risk management techniques discussed in the book?
: Focus on low-risk trades that capture 60–80% of a long-term trend rather than trying to time every top and bottom. Pursuit of Extraordinary Gains
: In an uptrend, the price rallies back toward the previous high but to make a new high. The Breakdown
First published in 1991, Trader Vic: Methods of a Wall Street Master is the first of two books by Victor Sperandeo, a professional trader with a reported 20-year track record of no losing years. Unlike many abstract trading "gurus," Sperandeo—nicknamed "Trader Vic"—writes from direct experience as a speculator, hedge fund manager, and analyst. The book is part memoir, part technical manual, and part philosophy text. It aims to teach a disciplined, probabilistic approach to trading rather than a "get rich quick" system.
Sperandeo's "business philosophy" is encapsulated in three fundamental rules designed for a trading career:
Sperandeo's main method of trading is based on . He argues that if a trader knows what the trend is and when it is most likely to change, they have all the necessary knowledge to make money in the markets.
His quantitative rule for managing risk is as straightforward as it is effective: he only enters trades with a . For example, if you risk $1 on a trade, your potential profit must be at least $3.
