Unlike many technical traders, Sperandeo places immense weight on the Federal Reserve and monetary policy. He argues that:
Achieving steady, repeatable gains over time by executing high-probability setups.
If a market makes a new high (or low) but immediately fails to hold it, and then reverses to break back below the previous high (or above the previous low), it is a very strong signal that the trend has reversed. Part 4: Risk Management: Protecting Your Capital
In his technical analysis, Sperandeo relies heavily on and his own refinements. He states:
Maximizing gains during rare, highly favorable market conditions only after the first two goals are secured. trader vic methods of a wall street master by victor best
You must treat trading as a serious business, not a gamble. 🏛️ The Role of Economics
Sperandeo’s most famous technical contribution is the . Unlike complex Japanese candlestick patterns, this is pure price action. It identifies a potential trend change with three distinct steps:
Only once capital is preserved and consistent profits are accruing can a trader consider aggressive risk. Sperandeo pursues superior returns , but by increasing the size of his positions when a profit cushion exists to justify the risk. In other words, he lets his profits be the fuel for bigger, more ambitious trades.
: Stops must be calculated and placed in the market before a trade is executed, eliminating emotional hesitation when a trade goes wrong. The Psychology of the Master Trader Part 4: Risk Management: Protecting Your Capital In
Use stop-loss orders to automatically close losing positions.
: The medium-term waves (corrections or rallies) running counter to the primary trend, usually lasting a few weeks to several months.
Sperandeo's most famous contribution to technical analysis is his strict, mechanical framework for identifying when a price trend has officially changed. It requires three consecutive chart events:
Low interest rates and high liquidity lead to bullish trends. 🏛️ The Role of Economics Sperandeo’s most famous
: Maintaining detailed records of setups, outcomes, and emotional states to foster continuous improvement. New York University The book is available through retailers like Books A Million Trader Vic--Methods of a Wall Street Master - Wiley
“One of the hardest things to accept in life is that mistakes and pain are an inevitable and essential part of it. … There is no freedom from risk. There is no freedom from fear. There is no freedom from pain. There is no freedom from the possibility of failure. But there is freedom in the acceptance of all these as part of life.”
Using price action and charts to identify entry and exit points.