Just one thing c 1 to 4

...continued from yesterday...

Of the four chapters of the book summarized today, I believe the most useful for independent traders/investors is the chapter by Dennis Gartman. The other three out of the first four chapters, in my opinion, is relevant only to extremely long term, large funded, institutional money managers.

Andy Kessler – Signposts in the fog.
Invest where nobody knows anything, imagine what things might look like up ahead or look for vague outlines of what lies ahead. Then cash in when crowds arrives 3 months to 5 years later to drive prices up 100% to more than 1,000%.

Dennis Gartman – The not so simple rules of trading.
Never add to a losing position. Trade on the side (long or short) that has the upper hand and be willing to switch sides as soon as the other side gains the upper hand. Buy high to sell higher; sell low to buy lower. Sell markets that show the greatest weakness and buy markets that show the greatest strength. In a bull market go only either long or neutral; in a bear market go only either short or neutral. Markets can remain illogical longer than you can remain solvent. Markets run in cycles – when things are going well, trade often and large; when things are going poorly, trade less and smaller size until fortune turns better. Think like a fundamentalist and trade like a technician. Keep your technical system simple. Understanding mass psychology is more important than understanding economics. Do more of what is working and less of what is not working.

Mark Finn and Jonathan Finn - The triumph of hype over long-run experience.
Don’t rely on past returns to predict future performance of a money manager.

Gary Shilling – the long bond.
Find an important non-consensus long-term theme and stick with it.

...cont'd tomorrow...

Copyright 2007 Raymond T. Lee. All rights reserved.
Leisurely e-Mini Futures Trading
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