Dennis Gartman’s Simple Rules Of Trading


With the market making sharp moves on almost a daily basis it’s nearly impossible to make money. Or is it?

If it seems the pros know something you don’t, that might be because they do! Esteemed investor Dennis Gartman reveals a few of the maxims he lives by.

Rule: Never, Ever, Ever, Under Any Circumstance, Add To A Losing Position

Gartman’s Insights: “Why would you buy something that’s going down? Often times, things go down much more than investors expect. Don’t average in, average up.


Rule: Think Like A Fundamentalist; Trade Like A Technician

Gartman’s Insights: “You should never buy just because the fundamentals are bullish, the technicals have to be bullish, too! If you can understand that something is going up and see that it’s going up, the odds of succeeding in a trade are much better."


Rule: There Is Never Just One Cockroach

Gartman’s Insights: “Be careful when others tell you to buy the bad news. When you start hearing bad news in a stock or sector, expect that more bad news is coming.”


Rule: Do More Of That Which Is Working and Less Of That Which Is Not

Gartman’s Insights: This is one of Gartman’s biggest secrets. "Add to winning trades; cut or eliminate losing ones.” And he feels that maxim applies to other areas of life as well. “If buying your wife flowers makes your lives nicer, buy her more flowers!”

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Trader disclosure: On Nov. 28, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders;

Macke Owns (MSFT), (UUP), (GM), (TM), (WMT); Kinahan Owns (CL), (GM), (HD), (JCP), (WFC), (XLF), (YHOO), (AAPL); Dennis Gartman Owns (AAPL); Gartman Owns a Natural Gas Trust; Dennis Gartman Is Short (KSS); Terranova Is Long (DIS)

Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO: rtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.: Virtus Investment Partners Owns More Than 1% Of (ABD), (ARE), (BIG), (CLB), (DLR), (EPR), (EXR), (MAC), (SLB), (SKT), (UA), (IGE), (DBC), (DBV); Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights; Virtus Investment Partners Owns More Than 1% Of Shares Of Essex Property Trust Inc.; Virtus Investment Partners Owns More Than 1% Of Shares Of Corporate Office Properties Trust SBI MD

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