TRADING WISDOM

 

"The elements of good trading are: 1) cutting losses, 2) cutting losses, and 3) cutting losses. If you can follow these three rules, you may have a chance."

 ~ Ed Seykota

 

"The market can remain irrational longer than you can remain solvent."

~ John M. Keynes

 

 "If you trade without a stop-loss, eventually the markets will stop you from trading by creating permanent losses that can never be recovered."

~ John DiCecco (TrendCharts)

 

"Economists have correctly predicted nine of the last five recessions."

~ Paul Sameulson

 

"Trend following is an exercise in observing and responding to the ever-present moment of now."

~ Ed Seykota

 

"Risk comes from not knowing what you're doing."

~ Warren Buffet

 

"When a position is moving in the direction of your trade, do the opposite of fear; but when a position is moving against the direction of your trade, do the opposite of hope."

 ~ John DiCecco (TrendCharts)

 

"As a general rule (when trading), avoid those things that give you comfort; it's usually a false comfort."

 ~ William Eckhardt

 

Timing is Everything

If you had gone LONG the Nasdaq Composite Index on February 28, 2000 and held the position, you would have broken even on the trade on November 29, 2014.

That’s 14 long years of NOTHING.

Remember this the next time someone tells you that market timing is not important. 

SP500 TrendCharts Trades

Since December 28, 2007 our TrendCharts Trade Signals on the SP500 have generated an annualized compounded rate of return of 26.48%. 

SP500 Current Trade

We have been LONG the SP500 in our Model Portfolio since May 27, 2014.