Rules Victor Sperandeo

Rules Victor SperandeoIn 1991 Victor Sperandeo wrote book Trader Vic: Methods of a Wall Street Master“. Somehow this book is overlooked as great teaching material for traders and investors around the world.

There are 19 rules he define in the book. Please read them and learn them. Rules like this stand test of time.

Many people make the mistake of thinking that market behavior is truly predictable. Nonsense„Trading in the markets is an odds game, and the object is to always keep the odds in your favor. Like any other odds game, in order to win, you’ve got to know the rules and stick to them. Unlike other games, however, the single biggest reason rules are necessary is to keep a check on your emotions. Assuming you have the knowledge you need to take a position with confidence, the hard part is executing the trade correctly. Thats what the rules are for.


Rule Number 1: Trade with a plan and stick to it.

Rule Number 2: Trade with the trend. “The trend is your friend!”

Rule Number 3: Use stop loss orders whenever practical.

Rule Number 4: When in doubt, get out!

Rule Number 5: Be patient. Never overtrade.

Rule Number 6: Let your profits run; cut your losses short.

Rule Number 7: Never let a profit run into a loss.

Rule Number 8: Buy weakness and sell strength. Be just as willing to sell as you are to buy.

Rule Number 9: Be an investor in the early stages of bull markets. Be a speculator in the latter stages of bull markets and in bear markets.

Rule Number 10: Never average a loss-don’t add to a losing position.

Rule Number 11: Never buy just because the price is low. Never sell just because the price is high.

Rule Number 12: Trade only in liquid markets.

Rule Number 13: Never initiate a position in a fast market.

Rule Number 14: Don’t trade on the basis of “tips.” In other words, “trade with the trend, not your friend.” Also, no matter how strongly you feel about a stock or other market, don’t offer unsolicited tips or advice.

Rule Number 15: Always analyze your mistakes.

Rule Number 16: Beware of “Takeunders.”

Rule Number 17: Never trade if your success depends on a good execution.

Rule Number 18: Always keep your own records of trades.

Rule Number 19: Know and follow the Rules!


Igor Marinkovic

Electronic engineer, futures trader and property investor and total beginner in making good web sites