"I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade."
Losses are a big part of trading.
Learn how to lose correctly.
"A good trend following system will keep you in the market until there is evidence that the trend has changed."
Price is the best evidence. Price pays.
"I always say that you could publish trading rules in the newspaper & no one would follow them. The key is consistency & discipline. What they couldn’t do is give them the confidence to stick to those rules while things are going bad."
You learn how to trade through trading!
"If there is any lesson I have learned in the nearly twenty years that I’ve been in this business, it is that the unexpected & the impossible happen every now & then. Don’t think in terms of boundaries that
limit what the market might do."
Main lessons from Richard Dennis
· Short term results are just noise
· The trend is your friend
· Discipline & consistency are key
· Expect the unexpected in the markets
Richard Dennis, also known as the “Prince of the Pit”, was a very successful commodities trader. In the 1970s, Dennis borrowed $1,600 and turned it into over $200 million in about 10 years.
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